Which of the following criteria should be met before a company chooses throughput costing?

a.Conversion costs are fixed costs and do not vary proportionately with the units of production.

b.Use of assembly-line and continuous processes that are not highly automated.

c,Conversion costs are variable and remain constant with the units of production.

d. Management favour towards cost accounting information that is helpful for the long term.

2-

Absorption-costing net income can be reconciled to variable-costing net income by

a.deducting deferred ending inventory fixed manufacturing overhead from the absorption-costing net income.

b deducting deferred ending inventory variable manufacturing overhead from the variable-costing net income.

c. adding deferred ending inventory fixed manufacturing overhead from the absorption-costing net income.

d. adding deferred ending inventory variable manufacturing overhead from the variable-costing net income.