1. Under full absorption costing:

a. Companies can increase income by increasing the number of units produced.

b. Only product costs that vary per unit are included in cost of goods sold.

c. Only direct materials cost is included in cost of goods sold.

d. All product and period costs are included in cost of goods sold.

2. Whenever the amount of misapplied overhead is immaterial (in dollar amount), it is usually closed out to

O a. Materials inventory.

O b. Finished goods inventory.

O c. Cost of goods sold.

d. Work in process inventory.

3. Which of the following does not create an increase in the work in process inventory?

1. Purchase of direct materials
2. Application of manufacturing overhead???????
3. incurrence of direct labor costs
4. Requisition of direct materials

4.Under variable costing:

1. companies can increase income by increasing the number of units produced
2. Only direct materials cost is included in cost of goods sold
3. All product and period costs are included in cost of goods sold
4. Only product costs that vary per unit are included in cost of goods sold

5. Which of the following statements about variable costing is true? (Select the three that apply.)

a. It treats direct labor as a product cost.

b. It treats variable overhead as a product cost.???

c. It treats fixed overhead as a product cost.

d. It shows gross profit as a major subtotal.???

e. It facilitates CVP analysis.???

f. lt is required by GAAP.

6. The only difference between variable costing and throughput costing is with respect to the treatment of direct labor costs

True

O False