Which of the following cost systems will a service industry company most likely use to determine service cost?

1, absorption costing

2,period costing

3,process costing

4,none of the above

Which of the following is true?

1,Under absorption costing, fixed overhead is applied to manufacture goods as a product cost.

2,Under absorption costing, fixed overhead remains in inventory until the goods are sold.

3,Under variable costing, fixed overhead is a period cost expensed during the period when it is incurred.

4,A & B only are true.

5,A, B & C are true.

Income reported under absorption and variable costs can be reconciled by focusing the effect of the two places where the statement differ

1,Calculation of cost of goods sold

2,Period Costs

3,Both A and B

4,none of the above