Accounting Ch. 6

Accounting Ch. 6 - 1. When determining a segment margin,...

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1. When determining a segment margin, which fixed costs are charged to the segment? a. Only variable costs are charged to the segment b. Common c. Traceable d. Traceable and common 2. The two general approaches used internally by manufacturing companies for costing products for the purposes of valuing inventory and cost of goods sold are ____________ costing and _____________ costing. a. Absorption, variable 3. Any difference in net operating income between absorption costing and variable costing is due to the: a. Format of the income statements b. Amount of selling and administrative cost expensed c. Amount of sales recognized d. Timing of when fixed manufacturing overhead is expensed. 4. Contrast the way fixed manufacturing overhead costs are treated in absorption costing versus variable costing. a. Absorption costing: fixed manufacturing overhead is treated as part of the per unit product cost and expensed as units are sold b. Variable costing: fixed manufacturing overhead is treated as a period cost and expensed in full each period. 5. Variable costing only treats ______________ manufacturing costs as product costs. a. Variable 6. When a segment is eliminated, a: a. Traceable fixed cost will disappear b. Common fixed cost will remain unchanged 7. Absorption costing treats which of the following manufacturing costs as product costs? a. Only fixed manufacturing costs b. Only variable manufacturing costs c. Both variable and fixed manufacturing costs d. Neither variable or fixed manufacturing costs 8. Net operating income is lower under absorption costing (than under variable costing) when inventory decreases because ____________ manufacturing overhead from the previous periods is released from inventory to the ___________ statement in the cost of goods sold account. a. Fixed, income
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9. Matching the costing method with the way costs are separated for each method. a. Variable costing: variable and fixed b. Absorption costing: manufacturing and selling and administrative 10. Which of the following approaches may be used internally by manufacturing companies for costing products for the purposes of valuing inventory and cost of goods sold? a.
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This note was uploaded on 10/19/2011 for the course ACCTG 222 taught by Professor Silvers during the Spring '11 term at UMass (Amherst).

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Accounting Ch. 6 - 1. When determining a segment margin,...

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