CHAPTER 8 - 1. Under variable costing, fixed manufacturing...

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1. Under variable costing, fixed manufacturing overhead is: A. expensed immediately when incurred. B. never expensed. C. applied directly to Finished-Goods Inventory. D. applied directly to Work-in-Process Inventory. E. treated in the same manner as variable manufacturing overhead. 2. All of the following are inventoried under variable costing except: A. direct materials. B. direct labor. C. variable manufacturing overhead. D. fixed manufacturing overhead. E. items "C" and "D" above. 3. All of the following are expensed under variable costing except: A. variable manufacturing overhead. B. fixed manufacturing overhead. C. variable selling and administrative costs. D. fixed selling and administrative costs. E. items "C" and "D" above. 4. All of the following costs are inventoried under absorption costing except: A. direct materials. B. direct labor. C. variable manufacturing overhead. D. fixed manufacturing overhead. E. fixed administrative salaries. 5. All of the following are inventoried under absorption costing except: A. direct labor. B. raw materials used in production. C. utilities cost consumed in manufacturing. D. sales commissions. E. machine lubricant used in production. 6. The underlying difference between absorption costing and variable costing lies in the treatment of: A. direct labor. B. variable manufacturing overhead. C. fixed manufacturing overhead. D. variable selling and administrative expenses.
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This note was uploaded on 08/09/2011 for the course ACCOUNTING --- taught by Professor --- during the Spring '11 term at Universidad Iberoamericana.

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CHAPTER 8 - 1. Under variable costing, fixed manufacturing...

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