Variable costing has an advantage over absorption costing for which of the following purposes? all of the choices mentioned analysis of profitability of products, territories, and other segments of a business determining the CVP relationship among the major factors of selling price, sales mix, and sales volume minimizing the effects of inventory changes on net income

Q: variable

A: Performance evaluation based on income could be best achieved by using variable costing method in…

Q: Considering the data given above, under variable costing and absorption costing, ending inventory…

A: Income statement: The income statement determines the net income of the business by subtracting the…

Q: Variable selling expenses are a. Product costs under variable costing but period costs under…

A: The correct answer is Option (a).

Q: “ Managers must decide whether a product should be sold at splitoff or processed furthur.The sales…

A: No, any method that is used to assign costs to individual products that is applied to the problem of…

Q: When should a company use absorption costing when setting sales prices? When should it use variable…

A: Variable Costing: "Variable costing is a method that allocates only variable manufacturing costs to…

Q: Which of the following is not a potential advantage of variable costing relative to absorption…

A: Variable costing is a method in which only variable cost is considered in product cost. Absorption…

Q: Under variable costing, how is it possible to increase net operating income without increasing sales

A: Introduction:- Under the Variable costing includes only variable manufacturing costs such as  direct…

Q: Which of the following is true of a company that uses absorption costing? Multiple Choice   Net…

A: Absorption costing: Under the absorption costing method, manufacturing costs such as direct material…

Q: Which of the following is not an assumption underlying cost-volume-profit analysis? a. The sales mix…

A: Solution: Introduction: Cost Volume Profit (CVP) Analysis describes how changes in costs, expenses…

Q: Which of the following statements is true? Multiple Choice Product costs and variable costs are…

A: Product cost means the cost which are incurred to create a product that is intended for sale to the…

Q: Calculation of profit change from changes in sales price, sales volume, variable costs, or fixed…

A: This question deals with profit change from changes in sales price, sales volume, variable costs, or…

Q: CVP analysis

A: Option "b" is wrong because the statement is true. The purpose of CVP analysis is to study the…

Q: In determining cost behavior in business, the cost function is often expressed as Y=a+bX. Which one…

A: There are two types of costs in the business, one is fixed costs and other is variable costs. Fixed…

Q: Which of the following is not an underlying assumption of a conventional CVP analysis? Multiple…

A: Cost-volume-profit analysis is the most important tool that is used by managers to specify the cost…

Q: ?Which one of the following is not considered an assumption of cost-volume-profit analysis Costs can…

A: The question is multiple choice question. The question is related to Marginal Costing and is of cost…

Q: 1: When using absorption costing, a company may be able to show a profit even if it is operating…

A: Solution: True, When using absorption costing, a company may be able to show a profit even if it is…

Q: Consider the following statements about absorption costing and variable costing: Variable costing…

A: Absorption costing and variable costing are managerial accounting and financial reporting cost…

Q: Which of the following statements is true for a firm that uses variable costing? A. The cost of a…

A: Variable costing may be a strategy that as it were allocates variable costs to stock. This approach…

Q: Which one of the following is not considered an assumption of cost-volume-profit analysis? a. Costs…

A: Cost volume profit analysis is also known as CVP analysis. It shows how profits of the organisation…

Q: Cost-volume-profit analysis (CVP Analysis) requires management to classify all costs as either…

A: Cost volume profit analysis (CVP Analysis) helps the business entity in determining the impact on…

Q: Managers must decide whether a product should be sold at splitoff or processed further. The sales…

A: Joint cost is the cost of assembling, that is incurred by an organization on a joint creation…

Q: When comparing absorption costing with variable costing, which of the following statements is not…

A: Absorption costing is that method of costing, in which all total costs (fixed and variable) are…

Q: Is there any way to show high net operating income without increasing sales under the absorption…

A: A method of costing that involves consideration of all the manufacturing costs for calculation of…

Q: Under variable costing a. Net income will tend to vary inversely with production changes b. Net…

A: DM=Direct materials OHD=Overhead   Step 1   Variable costing is a method that only allocates…

Q: Break-even analysis attempts to determine the volume of sales necessary for a manufacturer to cover…

A: Break-even point: The point of sales where the situation of No Profit No Loss comes is called…

Q: Which of the following is an advantage of using variable costing? *     a. Variable costing complies…

A: Variable costing distinct feature and advantage is that it enable to establish the cost volume…

Q: variable costing

A: What will be the difference in net earnings computed using variable costing as opposed toabsorption…

Q: Product costs under variable costing are typically: Group of answer choices A. higher than under…

A:

Q: Variable selling expenses are a. Product costs under variable costing but period costs under…

A: Hi student Since there are multiple questions, we will answer only first question.

Q: Product costs under variable costing are typically:   Question 1 options:   lower than under…

A: As per the variable costing method, only variable cost is considered as the product cost while in…

Q: Relevant of differential cost analysis takes all variable and fixed costs into account to analyze…

A: Differential cost analysis is the difference in cost for every alternative which helps in making the…

Q: In a product mix decision, which is the most important factor to consider in order to try to…

A: Product mix decision includes the decision related to the adding or eliminating of the product…

Q: What will be the difference in net earnings computed using variable costing as opposed to absorption…

A: Under variable costing, whole amount of fixed overhead will be charged in the income statement.…

Q: costs assigned to units in inventory are typically lower under absorption costing than under vanable…

A: As per the guidelines, only one question is allowed to be solved so I am answering the first…

Q: A range of costing methods have been considered in the module. Which of the following statements is…

A: Following is the answer to the given question

Q: Which of the following is NOT an assumption of cost-volume-profit analysis?   Question 10…

A: The question is based on the concept of Cost Accounting.

Q: Which of the following statements is true?   a. When production is greater than sales, operating…

A: The question is based on the concept of Cost Accounting.

Q: Which of the following is not a potential advantage of variable costing relative absorption costing?…

A: Cost volume profit analysis is calculated by dividing the fixed cost by the unit contribution…

Q: Throughput costing   • Treats all cost as period cost except for direct materials • Is very suitable…

A: Variable Costing: Variable Costing is technique of costing which does not considers the fixed cost…

Q: This best accounts for the difference in profit between the absorption and variable costing *…

A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…

Q: Break-even analysis attempts to determine the volume of sales necessary for a manufacturer to cover…

A: Variable costs are those costs that change with the change in the activity level. On the other hand,…

Q: Which of the following is not a feature of full cost plus sales pricing related to a range of a…

A: Following is the answer to the given question

Q: Operating profits move in the same direction as sales when variable costing is used if selling…

A: Introduction:- Variable costing varies in respective of units production Which is used for making…

Q: Which of the followings is not correct about cost-based pricing? Select one: a. Total fixed costs…

A: Cost based pricing is the method to set selling price based on the cost. To get selling price,…

Q: Match each of the following descriptions with the appropriate term.   Clear All Plots only the…

A: Given, Match each of the following descriptions with the appropriate term.

Q: How is operating income affected if the number of units sold exceeds the number of units produced?…

A: Under variable costing, fixed manufacturing overhead is considered as a period cost and deducted a…