CHAPTERS 5-8 MATCHING Questions

CHAPTERS 5-8 MATCHING Questions - MATCHING QUESTIONS AND...

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MATCHING QUESTIONS AND ANSWERS CHAPTERS 5-8 CHAPTER 5 MATCHING – A Shown below are two inventory costing systems. Match each system to the description listed below. Use Capital letters for your answers. F – Full costing system V – Variable costing system ______ 1. Also known as absorption costing. ______ 2. Can only be used for internal reporting purposes. ______ 3. Treats fixed overhead as a period cost. ______ 4. Is used in conjunction with the traditional income statement format. ______ 5. Is required for external reporting purposes. ______ 6. Will result in the higher net income when production exceeds sales. ______ 7. Is used in conjunction with the contribution margin income statement. ______ 8. Treats fixed overhead as a product cost. ______ 9. Facilitates C-V-P analysis. ______ 10. Allows companies to manage profits with changes in production volume.
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CHAPTER 5 MATCHING – B Match the following terms to the statements shown below. Use capital letters for your answers. Each term can only be used once. A. Absorption costing F. Internal reporting B. Contribution margin G. Period costs (full costing) C. External reporting H. Product costs (variable costing) D. Fixed overhead I. Traditional E. Full costing J. Variable costing ______ 1. Is another name for full costing. ______ 2. Treats fixed overhead as a product cost. ______ 3. Is the income statement format used with variable costing. ______ 4. Selling and administrative expenses. ______ 5. Variable costing can only be used for this type of reporting. ______ 6. Is considered a period cost under variable costing. ______ 7. Direct materials + direct labor + variable overhead. ______ 8.
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CHAPTERS 5-8 MATCHING Questions - MATCHING QUESTIONS AND...

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