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 For overall assignment grading purposes, this question will not be marked as "incorrect," if eight of the ten component parts are correctly answered.)

Shows gross profit as a major subtotal

Inventories direct materials costs.

Is the basis for CVP analysis.

Treats fixed selling and administrative expenses as period costs.

Inventories fixed overhead

Is influenced by the number of units produced.

Treats fixed overhead as a period cost.

Inventories direct labor costs

Capitalizes variable selling andadministrative costs.

Capitalizes variable overhead costs.