Please Help! Just a simple answer is ok.

Which of the following costs listed below would be included in cost of goods sold when utilizing absorption costing?

Multiple Choice 13)

• advertising expense

• depreciation expense on the office building

• office supplies costs

• none of the above would be included in cost of goods sold under absorption costing

• salesperson salaries

Identify the correct statement below as it relates to the margin of safety:

Multiple Choice 15)

• The margin of safety is useful to management because it calculates by how much sales units have to increase for management to go from a loss position, to a profit position.

• The margin of safety in Sales dollars can be calculated without calculating the break-even point in Sales dollars.

• The margin of safety calculation can be expressed in units, in Sales dollars, as a percentage, as a fixed amount that does not change as sales change, and as a mixed cost value.

• The margin of safety represents the amount that Sales can drop before an organization meets its break-even point.

Under variable costing, which of the following costs would be considered a period cost?

Multiple Choice 19)

• Guitar string used to product guitars in a factory

• Wages of direct laborers in the factory

• Insurance on the factory

• Utilities cost in the factory

20)

Earthlings Inc started the year with 1,000 units in beginning inventory. They produced 17,800 units during the year, and sold 18,100 units. Net Operating Income is greater under Variable costing than Absorption Costing.

TRUE or FALSE?