1. Absorption costing is also known as all of the following EXCEPT

a. Variable costing

b. Full costing

c. Traditional approach

d. Functional approach.

2. The distinction between absorption costing and variable coting is most important for which type of industry?

a. Manufacturing

b.Marketing

c. Retail

d. Service

3. When only direct manufacturing costs and variable manufacturing overhead costs are included as inventoriable cost, the method being used is

a. Absorption costing

b. Fixed overhead costing

c. Manufacturing overhead costing

d. Variable costing.

4. Variable costing regards fixed manufacturing overhead as

a.An unexpired cost

b.An inventoriable cost

c. charge against sales.

d. A product cost.

5. When the distinction between variable and fixed costs is one of the important elements in the preparation of the income statement, the method used should be the

a. Capitalization method

b. Contribution margin method.

c. Gross margin method.

d. Inventoriable method.