Question 1

During a given year, if a company produces more than it sells, the ending inventory will be less than the beginning inventory.

True

False

14.2858 points

Question 2

Variable costing separates the variable costs from the fixed costs and therefore makes it easier to identify and assign control over costs.

True

False

14.2858 points

Question 3

Under variable costing, fixed overhead is considered to be a product cost

True

False

14.2858 points

Question 4

Cost information from both absorption costing and variable costing can aid managers in pricing

True

False

14.2858 points

Question 5

A contribution income statement is used for GAAP-based financial reporting purposes

True

False

14.2858 points

Question 6

Contribution margin is the excess of sales over fixed costs

True

False

14.2858 points

Question 7

Variable costing treats fixed overhead cost as a period cost

True

False