Which denominator-level concept results in the highest amount of fixed manufacturing overhead costs per unit of ending inventory when seasonal demand is low? A practical capacity 3. supply capacity c. theoretical capacity D. master - budget capacity E normal capacity The distinction between absorption costing and variable costing is most important for which type of industry? A. service B. marketing C. educational D. manufacturing E. retail Under variable costing, which of the following expenses is inventoriable? O A. variable and fixed manufacturing overhead O B. variable manufacturing overhead O c. direct manufacturing labour and fixed manufacturing overhead O D. marketing and direct manufacturing labour E. variable manufacturing overhead and administrative When the distinction between Variable and fed costs is one of the important elements in the preparation of the income statement, the method used should be the O A contribution margin method B. capitalization method. c. absorption method D. gross margin method E inventoriable method A possible criticism of costing is that fixed manufacturing overhead is treated as alan A. variable: asset B. absorption; period cost C. variable; liability D. absorption; asset E. absorption; variable cost in the long run Which of the following criteria should be used to evaluate management according to critics of absorption costing? A. the extent to which financial performance measures are used B. the extent to which operating income is increased in the short run c. the extent to which production quotas are exceeded D. the extent to which inventory production matches demand O E. We should rely only on financial criteria to measure performance