Question :
76. Which of the following would be included in the cost : 1226968
76. Which of the following would be included in the cost of a product manufactured according to variable costing? A. sales commissionsB. property taxes on factory buildingsC. interest expenseD. direct materials
77. On the variable costing income statement, the figure representing the difference between manufacturing margin and contribution margin is the: A. fixed manufacturing costsB. variable cost of goods soldC. fixed selling and administrative expensesD. variable selling and administrative expenses
78. In the variable costing income statement, deduction of variable selling and administrative expenses from manufacturing margin yields: A. differential marginB. contribution marginC. gross profitD. marginal expenses
79. The amount of income under absorption costing will equal the amount of income under variable costing when units manufactured: A. exceed units soldB. equal units soldC. are less than units soldD. are equal to or greater than units sold
80. The amount of income under absorption costing will be less than the amount of income under variable costing when units manufactured: A. exceed units soldB. equal units soldC. are less than units soldD. are equal to or greater than units sold
81. Which of the following statements is correct using the direct costing concept? A. All manufacturing costs are included in the calculation of cost of goods manufactured.B. Only fixed costs are included in the calculation of cost of goods manufactured while variable costs are considered period costs.C. Only variable manufacturing costs are included in the calculation of cost of goods manufactured while fixed costs are considered period costs.D. All manufacturing costs are considered period costs.
82. The amount of income under absorption costing will be more than the amount of income under variable costing when units manufactured: A. exceed units soldB. equal units soldC. are less than units soldD. are equal to or greater than units sold
83. The level of inventory of a manufactured product has increased by 7,000 units during a period. The following data are also available:
Variable
Fixed
Unit manufacturing costs of the period
$12.00
$6.00
Unit operating expenses of the period
4.00
1.50
What would be the effect on income from operations if absorption costing is used rather than variable costing? A. $42,000 decreaseB. $42,000 increaseC. $52,500 increaseD. $52,500 decrease
84. The level of inventory of a manufactured product has increased by 8,000 units during a period. The following data are also available:
Variable
Fixed
Unit manufacturing costs of the period
$24.00
$10.00
Unit operating expenses of the period
8.00
3.00
What would be the effect on income from operations if variable costing is used rather than absorption costing? A. $80,000 decreaseB. $80,000 increaseC. $104,000 decreaseD. $104,000 increase
85. S&P Enterprises sold 10,000 units of inventory during a given period. The level of inventory of a manufactured product remained unchanged. The manufacturing costs were as follows:
Variable
Fixed
Unit manufacturing costs of the period
$11.00
$7.00
Unit operating expenses of the period
3.00
2.50
Which of the following statements is true? A. Net income will be the same under both variable and absorption costing.B. Net income under variable costing will be $45,000 less than net income under absorption costingC. Net income under absorption costing will be $40,000 more than under variable costing.D. The difference in net income cannot be determined.
