1. For absorption costing the product cost per unit equals Direct materials , fixed overhead & variable...
Question:
1.
For absorption costing the product cost per unit equals
Direct materials , fixed overhead & variable overhead divided by units produced | ||
Direct materials, direct labor &, variable overhead divided by units produced | ||
Direct labor, fixed overhead &, direct materials divided by units produced | ||
Direct labor, direct materials, fixed and variable overhead divided by units produced |
2.
If ABC costing is a way of
allocating materials | ||
allocating direct materials | ||
allocating overhead | ||
saving time |
3.
In absorption income statements
fixed overhead is part of product costs | ||
fixed costs are deducted from the contribution margin | ||
fixed costs are ignored | ||
fixed costs are part of product costs |
4.
Fixed overhead is a period cost deducted in the period in which it is incurred.
constant costing | ||
absorption costing | ||
variable costing | ||
GAAP statement |
Fundamentals Of Corporate Finance
ISBN: 9780135811603
5th Edition
Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford