Which of the following will not be found on an absorption costing income statement?

Select one:

a. Gross margin

b. Contribution margin

c. Net income

d. Cost of goods sold

If the selling price is $5/unit, the variable cost is $1/unit and the fixed cost is $20,000, the breakeven in units is

Inventoriable costs using variable costing is appropriate for external reporting. T/F

Converse company has two products A and B. The weighted average contribution margin per unit is $4. Converse sells twice as many As as Bs. The contribution margin per unit for B is $2. What is it for A?

Which costing approach is in accordance with generally accepted accounting principles?

Select one:

a. Absorption costing

b. Variable costing

c. Direct Costing

d. None of the above

If units produced are less than units sold, net income using absorption costing is

Select one:

a. Greater than variable costing

b. Less than variable costing

c. None of the above

Breakeven indicates that the sales dollars cover all fixed and variable costs of manufacturing. T/F

Absorption costing clearly separates fixed costs from variable costs. T/F

If units produced are more than units sold, net income using absorption costing is

Select one:

a. Greater than variable costing

b. Less than variable costing

c. The same as variable costing