e10 - 1. Absorption costing "absorbs" only...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
1. Absorption costing “absorbs” only variable manufacturing costs. Answer : False Difficulty : 1 Objective : 1 Terms to Learn : absorption costing Absorption costing “absorbs” all manufacturing costs, both fixed and variable. 2. Variable costing includes all variable costs — both manufacturing and nonmanufacturing — in inventory. Answer : False Difficulty : 1 Objective : 1 Terms to Learn : variable costing Variable costing includes only manufacturing variable costs in inventory. 3. Under both variable and absorption costing, all variable manufacturing costs are inventoriable costs. Answer : True Difficulty : 1 Objective : 1 Terms to Learn : variable costing, absorption costing 4. Under variable costing, fixed manufacturing costs are treated as an expense of the period. Answer : True Difficulty : 1 Objective : 1 Terms to Learn : variable costing 5. The contribution-margin format of the income statement is used with absorption costing. Answer
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 3

e10 - 1. Absorption costing "absorbs" only...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online