What is a difference between full absorption costing and variable costing? Multiple Choice In full absorption costing, all of the nonmanufacturing costs are expensed. In variable costing, all of the nonmanufacturing expenses are included in the cost of the product. In full absorption costing, fixed manufacturing overhead is expensed. In variable costing, fixed manufacturing overhead is included in the cost of the product. In full absorption costing, manufacturing and nonmanufacturing expenses are isolated; in variable costing, variable and fixed expenses are isolated. Variable costing must be used for external financial reports while full absorption costing can only be used for internal reportina. Which of the following statements is correct about the difference between contribution margin and gross margin? Multiple Choice Contribution margin and gross margin are equivalent. Contribution margin is the difference between sales revenue and cost of goods sold. Gross margin is the difference between sales revenue and variable costs. Gross margin is used for external reporting, while contribution margin is used for internal reporting. Contribution margin is equal to: Multiple Choice total sales less fixed costs. fixed costs plus net operating income. variable costs plus net operating income. total sales less net operating income. If a firm sells more than one product, the break-even point in units represents: Multiple Choice the number of units of the largest-selling product required to break even. the number of units of the most profitable product required to break even. the number of units of the highest-revenue product required to break even. the sum of the units of all products required to break even