21 which of the following is considered a period cost under variable costing but not 4306476

21 which of the following is considered a period cost under variable costing but not 4306476

21) Which of the following is considered a period cost under variable costing but not under absorption costing?

A) fixed selling and administrative costs

B) variable manufacturing costs

C) fixed manufacturing overhead

D) variable selling and administrative costs

22) Which of the following is considered a period cost in absorption costing?

A) variable manufacturing overhead costs

B) fixed selling and administrative costs

C) fixed manufacturing overhead costs

D) semi-variable manufacturing overhead costs

23) Gross profit is calculated by deducting ________ from sales revenue.

A) total fixed costs

B) cost of goods sold

C) total variable costs

D) selling and administrative costs

24) Which of the following will appear as a line item in the traditional format of an income statement?

A) contribution margin

B) total variable costs (manufacturing and non-manufacturing)

C) total fixed costs (manufacturing and non-manufacturing)

D) gross profit

25) Which of the following will appear as a line item in the income statement prepared under variable costing?

A) contribution margin

B) total cost of goods sold

C) work-in-process inventory

D) gross profit

26) Which of the following statements is true of absorption and variable costing systems?

A) Both costing methods consider selling and administrative costs to be period costs.

B) Variable costing considers variable selling and administrative costs to be product costs.

C) Absorption costing considers fixed manufacturing overhead to be period costs.

D) Both costing methods consider fixed manufacturing overhead to be product costs.

27) Contribution margin is calculated by deducting ________ from sales revenue.

A) total product costs

B) total selling and administrative costs

C) total fixed costs

D) total variable costs

28) Nice Aqua Inc. has provided the following information for the year 2013.

Units produced

8,000

units

Sale price

$400

per unit

Direct materials

$35

per unit

Direct labor

$25

per unit

Variable manufacturing overhead

$45

per unit

Fixed manufacturing overhead

$480,000

per year

Variable selling and administrative costs

$70

per unit

Fixed selling and administrative costs

$250,000

per year

What is the unit product cost using variable costing?

A) $135

B) $100

C) $105

D) $165

29) Nice Aqua Inc. has provided the following information for the year 2013.

Units produced

8,000

units

Sale price

$400

per unit

Direct materials

$35

per unit

Direct labor

$25

per unit

Variable manufacturing overhead

$45

per unit

Fixed manufacturing overhead

$480,000

per year

Variable selling and administrative costs

$70

per unit

Fixed selling and administrative costs

$250,000

per year

What is the unit product cost using absorption costing?

A) $120

B) $165

C) $130

D) $105

30) Jupiter Inc. reports the following information for August:

Sale revenue

$800,000

Variable costs

200,000

Fixed costs

100,000

Calculate the contribution margin for the month of August.

A) $450,000

B) $600,000

C) $700,000

D) $650,000

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