An income statement in absorption costing follows the format of ___________?

Related Mcqs:

1. If the fixed manufacturing cost expenses are under variable costing and are not expensed in absorption costing, it is resulting in _________?

   A. production exceeds breakeven sales
   B. breakeven sales exceeds production
   C. price exceeds cost
   D. cost exceeds price

2. The variance which is included in absorption costing, but not in variable costing is classified as __________?

   A. production volume variance
   B. cost volume variance
   C. profit volume variance
   D. fixed cost variance

3. In absorption costing, the managers may increase operating income by producing ____________?

   A. more sales
   B. more inventory units
   C. less inventory units
   D. less sales

4. If the production is greater than sales, then operating income under absorption costing is _________?

   A. higher income
   B. zero dividends
   C. negative income value
   D. lower income

5. If the production is less than sales so, an operating income under absorption costing will be called ________?

   A. higher income
   B. zero dividends
   C. negative income value
   D. lower income

6. The costing system, which is a combination of process costing and job costing system, is classified as __________?

   A. weighted costing system
   B. average costing system
   C. hybrid costing system
   D. double costing system

7. The difference between absorption and variable costing is the accountability of ___________?

   A. direct overhead
   B. indirect overhead cost
   C. fixed manufacturing cost
   D. variable manufacturing cost

8. Under absorption costing, the fixed cost of manufacturing is deferred to some ___________?

   A. present period
   B. future period
   C. yearly period
   D. monthly period

9. In absorption costing, the contribution margin per unit, fixed operating and manufacturing costs are all the dependents of ___________?

   A. profit point
   B. breakeven point
   C. production point
   D. cost point

10. The normal costing and standard costing methods are used in decisions such as ___________?

    A. investment decisions
    B. pricing decisions
    C. product mix decisions
    D. Both B and C