30. The cost-volume-profit analysis works when the company uses the system of:

to. Full costing (absorption costing)

b. Variable costing (variable costing)

c. Activity-Based Costing (ABC)

d. All of the above.

31. What is the difference between Absorption costing, Variable costing and Throughput costing?

to. Under Variable costing, manufacturing fixed costs are NOT inventoried

b. Under Throughput costing, only direct raw material costs are inventoried

c. Both "a" and "b" are correct

d. Neither "a" nor "b" are correct

32. If a manufacturing company does NOT have inventories, the difference between the operating income under absorption costing and the operating income under variable costing will be:

to. equal to the variable overhead that the company incurred.

b. equal to the fixed overhead that the company incurred

c. equal to the sum of fixed overhead and incurred variable overhead

d. neither, both amounts will be equal

33. For the purposes of financial statements prepared under generally accepted accounting standards (GAAP), companies:

to. They should use absorption costing

b. They should use variable costing

c. they can use variable costing, but most companies use absorption costing

d. can use absorption costing, but most companies use variable costing