Indicate whether each of the following descriptions applies only to variable costing (V), only to absorption costing (A), to both variable and absorption costing (B), or to neither variable nor absorption costing (N).

a. Shows gross profit as a major subtotal. ________

b. Inventories direct materials costs. ________

c. Is the basis for CVP analysis. ________

d. Treats fixed selling and administrative expenses as period costs. ________

e. Inventories fixed overhead. ________

f. Is influenced by the number of units produced. ________

g. Treats fixed overhead as a period cost. ________

h. Inventories direct labor costs. ________

i. Capitalizes variable selling and administrative costs. __________

j. Capitalizes variable overhead costs. ________

12. Indicate whether each of the following descriptions applies to throughput costing by placing a Y (for yes) or a N (for no) in the space provided.

a. Shows gross profit as a major subtotal. ________

b. Inventories direct materials costs. ________

c. Is the basis for CVP analysis. ________

d. Treats fixed selling and administrative expenses as period costs. ________

e. Inventories fixed overhead. ________

f. Is influenced by the number of units produced. ________

g. Treats fixed overhead as a period cost. ________

h. Inventories direct labor costs. ________

i. Capitalizes variable selling and administrative costs. __________

j. Capitalizes variable overhead costs. ________