ACC Chap 5 - Lý thuyết

b

10. Which of the following statements is true? A. When production exceeds sales, a manufacturing company's variable costing net operating income will usually be greater than its absorption costing net operating income. B. The variable costing method is usually not used for external reporting purposes. C. The absorption costing method treats fixed production costs as period costs. D. All of the above

b

11. Which of the following statements is true for a company that uses variable costing? A. The unit product cost changes because of changes in the number of units manufactured. B. Profit fluctuates with sales. C. Any underapplied overhead is included in the product cost. D. Product costs include variable administration costs.

a

7. When reconciling variable costing and absorption costing net operating income, fixed manufacturing overhead costs released from inventory under absorption costing should be deducted from variable costing net operating income to arrive at the absorption costing net operating income. a. true b.false

b

8. If production exceeds sales for the period, variable costing net operating income will typically be greater than absorption costing net operating income a. true b.false

b

1. The costs assigned to units in inventory are typically lower under absorption costing than under variable costing. a. true b.false

c

12. Which of the following statements is true for a company that uses variable costing? A. The unit product cost changes as a result of changes in the number of units manufactured. B. Both variable selling costs and variable production costs are included in the unit product cost. C. Net operating income moves in the same direction as sales. D. Net operating income is greatest in periods when production is highest.

d

13. Which of the following costs at a sofa manufacturing company would be treated as a period cost under the variable costing method? A. the cost of glue used to assemble the wood frame of each sofa produced B. depreciation on sales vehicles C. the salary of a factory manager D. both B and C above

c

14. A cost that would be included in product costs under both absorption costing and variable costing would be: A. supervisory salaries. B. equipment depreciation. C. variable manufacturing costs. D. variable selling expenses.

b

15. Which of the following costs at a manufacturing company would be treated as a product cost under the absorption costing method? A. sales commissions B. fire insurance cost on factory building C. advertising costs D. all of the above

b

16. Assuming that direct labor is a variable cost, product costs under variable costing include only: A. direct materials and direct labor. B. direct materials, direct labor, and variable manufacturing overhead. C. direct materials, direct labor, variable manufacturing overhead, and variable selling and administrative expenses. D. direct material, variable manufacturing overhead, and variable selling and administrative expenses.

b

17. What is the cause of the difference between absorption costing net operating income and variable costing net operating income? A. Absorption costing deducts all manufacturing costs from net operating income; variable costing deducts only prime costs. B. Absorption costing allocates fixed manufacturing costs between cost of goods sold and inventories; variable costing considers all fixed manufacturing costs to be period costs. C. Absorption costing includes variable manufacturing costs in product costs; variable costing considers variable manufacturing costs to be period costs. D. Absorption costing includes fixed administrative costs in product costs; variable costing considers fixed administrative costs to be period costs.

c

18. The gross margin for a manufacturing company is the excess of sales over: A. cost of goods sold, excluding fixed manufacturing overhead. B. all variable costs, including variable selling and administrative expenses. C. cost of goods sold, including fixed manufacturing overhead. D. variable costs, excluding variable selling and administrative expenses

b

19. Weber Company computes net operating income under both the absorption costing approach and the variable costing approach. For a given year the absorption costing net operating income was greater than the variable costing net operating income. This fact suggests that: A. variable manufacturing costs were less than fixed manufacturing costs. B. more units were produced during the year than were sold. C. more units were sold during the year than were produced. D. common costs were greater than variable costs for the year.

b

2. Under variable costing, product cost contains some fixed manufacturing overhead cost. a. true b.false

a

20. Net operating income computed using variable costing would exceed net operating income computed using absorption costing if: A. units sold exceed units produced. B. units sold are less than units produced. C. units sold equal units produced. D. the average fixed cost per unit is zero.

c

21. Silver Company produces a single product. Last year, the company's variable production costs totaled $7,500 and its fixed manufacturing overhead costs totaled $4,500. The company produced 3,000 units during the year and sold 2,400 units. There were no units in the beginning inventory. Which of the following statements is true? A. Under variable costing, the units in the ending inventory will be costed at $4 each. B. The net operating income under absorption costing for the year will be $900 lower than the net operating income under variable costing. C. The ending inventory under variable costing will be $900 lower than the ending inventory under absorption costing. D. Under absorption costing, the units in ending inventory will be costed at $2.50 each

b

3. Variable selling and administrative expenses are part of product costs under the variable costing approach a. true b.false

a

4. In a manufacturing company using absorption costing, the fixed costs associated with idle production capacity are commonly included as part of the product cost a. true b.false

b

5. Direct labor is always considered to be a product cost under variable costing a. true b.false

a

6. Suppose fewer units are sold in year 2 than in year 1. If production exceeds sales in year 2, net operating income under absorption costing could be higher in year 2 than in year 1. a. true b.false

b

9. When sales exceeds production for a period, absorption costing net operating income will generally be greater than variable costing net operating income a.True b.False.