Quiz 5 1. 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 these. 2. 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. 3. 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
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Generally Accepted Accounting Principles, variable costing method, Silver Company