Which of the following costs is deducted from revenues of a manufacturing company in order to determine gross margin, but not deducted from revenues to determine contribution margin? Fixed manufacturing Variable manufacturing. Fixed selling and administrative. Variable selling and administrative Which of the following costing methods will yield the lowest inventory value? Absorpton Hybrid Process Variable Which of the following statements is correct regarding the difference between the absorption costing and variable costing methods? When production equals sales, absorption costing income is greater than variable costing income. When production equals sales, absorption costing income is less than variable costing income When production is greater than sales, absorption costing income is greater than variable costing income When production is less than sales, absorption costing income is greater than variable costing income. In an income statement prepared as an internal report, total fixed costs normally are shown separately under In an income statement prepared using the variable-costing method, fixed factory overhead would Not be used Be used in the computation of operating income but not in the computation of the contribution margin. Be used in the computation of the contribution margin Be treated the same as variable factory overhead A single-product company prepares income statements using both absorption and variable costing. Manufacturing overhead cost applied per unit produced in Year 2 was the same as in Year 1. The Year 2 variable-costing statement reported a profit, whereas the Year 2 absorption-costing statement reported a loss. A possible explanation for the difference in reported income is that the units produced in Year 2 were Fewer than units sold in Year 2. Fewer than the activity level used for allocating overhead to the product Greater than the activity level used for allocating overhead to the product. Greater than units sold in Year 2. In an income statement prepared as an internal report using the variable costing method, variable selling and administrative expenses are Not used. Treated the same as fixed selling and administrative expenses. Used in the computation of operating income but not in the computation of the contribution margin. Used in the computation of the contribution margin. In an income statement prepared as an internal report using the variable costing method, fixed selling and administrative expenses are Used in the computation of the contribution margin. Used in the computation of operating income but not in the computation of the contribution margin. Treated the same as variable selling and administrative expenses. Not used. Using the variable costing method, which of the following costs are assigned to inventory