Which of the following is not a potential advantage of variable costing relative to absorption costing? Net income calculated under variable costing is not closely tied to changes in sales levels. Net income calculated under variable costing is unaffected by changes in production levels. It is easier to understand the impact of fixed and variable costs on the computation of net income when variable costing is used. The use of variable costing is consistent with cost-volume-profit analysis

Q: explain why GAAP requires full absorption costing (instead of variable costing) if absorption…

A: Introduction:- i)Absorption costing:- Under the absorption costing, The following costs included in…

Q: Management is considering a one-time-only special order. There is sufficient idle capacity to fill…

A: Introduction:- Management (or management) is the administration of a company, whether for-profit,…

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

A: Cost volume profit analysis enables the management in determining the relation of costs and revenues…

Q: Which of the following is NOT true of variable costing?     a. Profits may increase though sales…

A: Variable costing is a concept used in managerial and cost accounting in which the fixed…

Q: When units produced are less than units sold, how does operating income differ between variable…

A: Absorption Costing: "Absorption costing is a method that allocates "direct labor, direct materials,…

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

A:

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: Gross margin is to absorption costing as which of the following is too variable costing?   A.…

A: Variable costing uses Contribution Margin Income Statement by showing Sales – VARIABLE expenses =…

Q: TRUE OR FALSE When absorption costing is used, management may be tempted to overproduce in each…

A: Under the absorption costing method, fixed overhead is considered as a product cost which is…

Q: If the units produced exceed unit sales, which method would you expect to show the higher…

A: Cost accounting is the branch of accounting that inspects the cost structure of a business. This…

Q: Explain why there is a difference in the operating profit and operating income under the two methods…

A: The product cost in an absorption costing method includes all variable and fixed production…

Q: When comparing absorption costing to variable costing, all of the below are disadvantages of…

A: Solution: When comparing absorption costing to variable costing, all of the below are disadvantages…

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: How lean production eliminate the difference between absorption and variable costing

A: Following is the answer to the given question

Q: Is this statement true or false? Can you please explain in detail. There is a difference between…

A: Firstly let us understand what is the theoretical production capacity is the optimum production…

Q: Why is variable costing not in compliance with generally accepted accounting principles? a. Fixed…

A: The generally accepted accounting principles are following the absorption method for the valuation…

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: Describe how total variable costs and unit variable costs behave with changes in the level of…

A: Since you have asked questions with multiple sub-parts, we shall be answering thefirst 3 for you.…

Q: When units sold exceeds units produced the relationship between net income under absorption costing…

A: THE VARIABLE COSTING METHOD TREATS FIXED MANUFACTURING OVERHEAD COSTS AS PERIOD COSTS , ALL FIXED…

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: What are these equations? c.Under absorption costing, what is the cost of goods sold? d.Under…

A: Hey, since there are multiple subparts posted, we will answer the first three subparts. If you want…

Q: Please explain thoroughly the statement below. (True/false), how and why?  "When expressed on a…

A: POINTS TO BE NOTED -    ** Fixed cost will remain constant irrespective of change in the level of…

Q: How does Lean Production reduce or eliminate the difference in reported net operating income between…

A: Absorption Costing: Absorption costing is a method for calculating the full cost or total cost of a…

Q: Management may be tempted to overproduce a. when using variable costing, in order to increase net…

A: Answer: Management may be tempted to overproduce Correct answer is option (c ) c. when using…

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: Give an example of how, under absorption costing, operating income could fall even though the unit…

A: Definition:   Absorption Costing: The absorption costing is a method used to allocate the fixed…

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

A:

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: What is the basic difference between variable costing and absorption costing? a. Variable costing…

A: Absorption costing: Absorption costing is also called traditional costing. This method of costing…

Q: Which one of the following is not an assumption of CVP analysis?   The behavior of costs and…

A: Cost Volume profit analysis is one of the means to find out how fixed costs and variable costs…

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

A: Cost - volume - profit analysis  It is used to determine the changes in cost and volume of sales…

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: When using a variable costing system, the contribution margin discloses the excess of Revenues over…

A: Contribution  margin = Total revenue - Total variable cost

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: Which of the following is true of fixed and variable costs? Volume changes will not change the…

A: Fixed cost includes expenses that remain constant irrespective of the level of outputs, like rent,…

Q: TRUE OR FALSE Net income under variable costing is closely tied to changes in sales levels.

A: Fixed cost remains same under the variable costing. No matter how much units are produced, the total…

Q: T, F. In a make or buy short-run decision situation, the critical element to consider is whether the…

A: As posted multiple independent questions we are answering only first question kindly repost the…

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: Under variable costing, all fixed costs (including fixed product costs) are expense in the period…

A: The matching principle is the fundamental concept of accounting. It suggests that the expenses…

Q: Net operating income fluctuates directly with changes in sales volume.       Fixed production and…

A: Answer:- correct option is  Unit product costs can change as a result of changes in the number of…

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: Which of the following statements about CVP analysis is false? O a. Operating income calculations in…

A: CVP analysis estimates the how much the changes in a company's cost, both fixed and variable, sales…

Q: When production exceeds sales, the net operating income reported under absorption costing generally…

A: The absorption costing includes the per unit cost of fixed overheads as well as variable overheads…

Q: Why do product-costing systems based on a single, volume-based cost driver tend to overcost…

A:

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: Which of the following is not an assumption underlying cost-volume-profit analysis?

A: Cost Volume Profit analysis- This analysis helps in understanding the cost and profit based on the…