Click to watch the Tell Me More Learning Objective 1 video and then answer the questions below.

1. Both fixed and variable factory costs are included as a part of cost of goods sold when accounting for absorption costing.

True

False

2. Both fixed and variable factory costs are included as a part of cost of goods sold when accounting for variable costing.

True

False

3. When units manufactured are less than the number of units sold, the variable costing income from operations will be ________ that of absorption costing.

less than

greater than

equal to

None of these choices are correct.