MULTIPLE CHOICE 9 - MULTIPLE CHOICE 48. Which of the...

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MULTIPLE CHOICE 48. Which of the following cost(s) are inventoried when using variable costing? a. Direct manufacturing costs b. Variable marketing costs c. Fixed manufacturing costs d. Both (a) and (b) Answer: 49. a Difficulty: 1 Objective: 1 Which of the following cost(s) are inventoried when using absorption costing? a. Direct manufacturing costs b. Variable marketing costs c. Fixed manufacturing costs d. Both (a) and (c) Answer: d Difficulty: 1 Objective: 1 50. Absorption costing is required for all EXCEPT a. generally accepted accounting principles. b. determining a competitive selling price. c. external reporting to shareholders. d. income tax reporting. Answer: b Difficulty: 2 Objective: 1 51. Absorption costing a. expenses marketing costs as cost of goods sold. b. treats direct manufacturing costs as a period cost. c. includes fixed manufacturing overhead as an inventoriable cost. d. is required for internal reports to managers. Answer: c Difficulty: 3 Objective: 1 52. Variable costing a. expenses administrative costs as cost of goods sold. b. treats direct manufacturing costs as a product cost. c. includes fixed manufacturing overhead as an inventoriable cost. d. is required for external reporting to shareholders. Answer: b Difficulty: 3 Objective: 1 53. __________ method(s) expense(s) variable marketing costs in the period incurred. a. Variable costing b. Absorption costing c. Throughput costing d. All of the above Answer: d Difficulty: Chapter 9 1 Objective: 1 Page 7 54. __________ method(s) include(s) fixed manufacturing overhead costs as inventoriable costs. a. Variable costing b. Absorption costing c. Throughput costing d. All of the above Answer: b Difficulty: 1 Objective: 1 55. __________ method(s) expense(s) direct material costs as cost of goods sold. a. Variable costing b. Absorption costing c. Throughput costing d. All of the above Answer: d Difficulty: 1 Objective: 1 56. __________ method(s) is required for tax reporting purposes. a. Variable costing b. Absorption costing c. Throughput costing d. All of the above Answer: b Difficulty: 1 Objective: 1 57. Variable costing regards fixed manufacturing overhead as a. an administrative cost. b. an inventoriable cost. c. a period cost. d. a product cost. Answer: c Difficulty: 1 Objective: 1 58. The only difference between variable and absorption costing is the expensing of a. direct
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manufacturing costs. b. variable marketing costs. c. fixed manufacturing costs. d. both (a) and (c). Answer: c Difficulty: 2 Objective: 1 Chapter 9 Page 8 THE FOLLOWING INFORMATION APPLIES TO QUESTIONS 59 AND 60. Marie s Decorating produces and sells a mantel clock for $100 per unit. In 20x1, 100,000 parts were produced and 80,000 units were sold. Other information for the year includes: Direct materials Direct manufacturing labor Variable manufacturing costs Sales commissions Fixed manufacturing costs Administrative expenses, all fixed 59. $30.00 per unit $ 2.00 per unit $ 3.00 per unit $ 5.00 per part $25.00 per unit $15.00 per unit What is the
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This note was uploaded on 08/28/2010 for the course ACCTG 101 taught by Professor Smith during the Spring '10 term at Alabama State University.

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MULTIPLE CHOICE 9 - MULTIPLE CHOICE 48. Which of the...

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