Consider the following three product costing alternatives: process costing, job order costing, and standard costing. Which of these can be used in conjunction with absorption costing?

Select one:

a. process costing

b. job order costing

c. all of these are correct

d. standard costing

An ending inventory valuation on an absorption costing balance sheet would

Select one:

a. always be greater than or equal to the ending inventory valuation under variable costing.

b. sometimes be less than the ending inventory valuation under variable costing.

c. always be less than the ending inventory valuation under variable costing.

d. always be the same as the ending inventory valuation under variable costing.

If a firm uses variable costing, fixed manufacturing overhead will be included

Select one:

a. on neither the balance sheet nor income statement.

b. only on the income statement.

c. only on the balance sheet.

d. on both the balance sheet and income statement.

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