Which of the following costs are included as a product cost under Absorption costing?

		Direct Materials
		Direct Labor
		Variable Overhead
		Fixed Overhead
		Variable Selling & Administrative
		Fixed Selling & Administrative

Match the phrase that answers the statement correctly.

- A. B. C.	Variable costing income
- A. B. C.	Absorption Costing income

A.	is dependent only on sales volume
B.	is dependent on both the amount of sales and production
C.	is dependent only on the level of production

Which costing method can be misleading regarding the true cost of production?

		Variable Costing
		Absorption costing
		Neither method can be misleading
		Both methods can be misleading

Which costs are included as product costs under Variable Costing?

		Direct Materials
		Direct Labor
		Variable Overhead
		Fixed Overhead
		Variable Selling & Administrative
		Fixed Selling & Administrative

A division should always be dropped if it has a negative segment margin

True

False