Chapter 9 objective 1
Which of the following costs inventoried when using variable costing?
Electricity consumed in manufacturing process
Which of the following is true of absorption costing?
It includes fixed manufacturing overhead as an inventoriable costs.
Which of the following is true of variable costing?
It treats direct manufacturing costs as a product cost.
Variable costing regards fixed manufacturing overhead as a(n) _______.
Period cost
Which of the following costs will be treated as period costs under absorption costing?
Sales commission paid on sales of product
Which of the following costs is inventoried using absorption costing?
Variable manufacturing costs
In _____, fixed manufacturing costs are included as inventoriable costs.
Absorption costing
Which of the following inventory costing methods shown below is required by GAAP for external financial reporting?
Absorption costing
_____ is a method of inventory costing in which all variable manufacturing costs and all fixed manufacturing costs are included as inventoriable costs?
Absorption costing
______ method includes fixed manufacturing overhead costs as inventoriable costs.
Absorption costing
Under absorption costing, fixed manufacturing costs _____.
Are inventoriable cost
The only difference between variable and absorption costing is the expensing of ______.
Fixed manufacturing costs
______ is a method of inventory costing in which all variable manufacturing cost (direct and indirect) are included as inventoriable costs and all fixed manufacturing costs are excluded.
Variable costing
______ is a method of inventory costing in which only variable manufacturing costs are included as inventoriable costs.
Variable costing
