Absorption Costing MCQs

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Which of the following is true of a company that uses absorption costing?






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Under absorption costing, fixed manufacturing overhead costs:






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Which of the following costs at a manufacturing company would be treated as a product cost under both absorption costing and variable costing? Vari...






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Under absorption costing, product costs include: Fixed factory overhead; Variable factory overhead






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When production exceeds sales, the net operating income reported under absorption costing generally will be:






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A single-product company prepares income statements using both absorption and variable costing methods. Manufacturing overhead cost applied per unit p...






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The type of costing that provides the best information for breakeven analysis is:






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Absorption costing is closely related to which of the following cost elements?






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MNance Corp began operations in January. The company produced 50,000 units and sold 45,000 units in its first year of operations. Costs for the year ...






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Osawa planned to produce and actually manufactured 200,000 units of its single product in its first year of operations. Variable manufacturing costs w...






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Product sales: 1,000 units at $10 each Variable manufacturing costs: $5.50 per unit Fixed manufacturing overhead: $1,200 Variable selling and admin...






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Valyn Corporation employs an absorption costing system for internal reporting purposes; however, the company is considering using variable costing. Da...






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Valyn Corporation employs an absorption costing system for internal reporting purposes; however, the company is considering using variable costing. Da...






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Valyn Corporation employs an absorption costing system for internal reporting purposes; however, the company is considering using variable costing. Da...






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When a firm prepares financial reports using absorption costing: