1 For external reporting purposes, your company uses Absorption Costing with Actual Costing. For internal reporting purposes, your company uses Variable Costing with Standard Costing. Which of the following statements is FALSE?

A Direct Materials would be the same for external and internal reporting purposes.

B Direct Labor would be the same for external and internal reporting purposes.

C Manufacturing Overhead would be the same for external and internal reporting purposes.

D All of the above

2 When attempting to compute a single product cost amount, companies should NOT try to combine

A Variable Costing and Standard Costing

B Variable Costing and Activity-Based Costing

C Variable Costing and Normal Costing

D Variable Costing and Absorption Costing

3 Surfer Company builds custom surfboards. The actual amount of overhead incurred cannot be accurately measured until year end. Every surfboard consumes overhead activities in different proportions. Which of the following product costing methods do you recommend that Surfer Company use?

A actual costing

B normal costing

C all of the above

D none of the above