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Questions and Answers
Which of the following is not associated with absorption costing?
Which of the following is not associated with absorption costing?
- gross margin
- functional format (correct)
- contribution margin
- period costs
What factor, related to manufacturing costs, causes the difference in net earnings computed using absorption costing and net earnings computed using variable costing?
What factor, related to manufacturing costs, causes the difference in net earnings computed using absorption costing and net earnings computed using variable costing?
- Absorption costing 'inventories' all fixed costs for the period in ending finished goods inventory, but variable costing expenses all fixed costs.
- Absorption costing allocates fixed overhead costs between cost of goods sold and inventories, and variable costing considers all fixed costs to be period costs. (correct)
- Absorption costing 'inventories' all direct costs, but variable costing considers direct costs to be period costs.
- Absorption costing considers all costs in the determination of net earnings, whereas variable costing considers fixed costs to be period costs.
Under variable costing,
Under variable costing,
- product costs are both fixed and variable. (correct)
- all product costs are variable.
- all period costs are variable.
- all product costs are fixed.
On the variable costing income statement, the difference between the 'contribution margin' and 'income before income taxes' is equal to
On the variable costing income statement, the difference between the 'contribution margin' and 'income before income taxes' is equal to
What costs are treated as product costs under variable (direct) costing?
What costs are treated as product costs under variable (direct) costing?
Which of the following is an argument against the use of direct (variable) costing?
Which of the following is an argument against the use of direct (variable) costing?
Which of the following statements is true for a firm that uses variable costing?
Which of the following statements is true for a firm that uses variable costing?
CVP analysis relies on the assumptions that costs are either strictly fixed or strictly variable. Consistent with these assumptions, as volume decreases total
CVP analysis relies on the assumptions that costs are either strictly fixed or strictly variable. Consistent with these assumptions, as volume decreases total
In CVP analysis, linear functions are assumed for
In CVP analysis, linear functions are assumed for
After the level of volume exceeds the break-even point
After the level of volume exceeds the break-even point
__ focuses only on factors that change from one course of action to another.
__ focuses only on factors that change from one course of action to another.
The margin of safety would be negative if a company('s)
The margin of safety would be negative if a company('s)
Which of the following is NOT an inherent power of the government?
Which of the following is NOT an inherent power of the government?
Which statement about inherent powers is true?
Which statement about inherent powers is true?
What is the primary character of the inherent powers of the government?
What is the primary character of the inherent powers of the government?
Under which inherent power did the Philippine government pass RA No. 14023 to penalize violations of community quarantine rules?
Under which inherent power did the Philippine government pass RA No. 14023 to penalize violations of community quarantine rules?
Which inherent power of the government has the most tangible equivalent compensation?
Which inherent power of the government has the most tangible equivalent compensation?
What is a common characteristic of eminent domain and police power?
What is a common characteristic of eminent domain and police power?
Which of the following is an example of the State’s exercise of police power?
Which of the following is an example of the State’s exercise of police power?
According to the benefits received theory, what statement is true?
According to the benefits received theory, what statement is true?
What is eminent domain?
What is eminent domain?
According to the Marshall doctrine, what does it justify?
According to the Marshall doctrine, what does it justify?
Which theory justifies taxes being a preferred credit?
Which theory justifies taxes being a preferred credit?
What does tax evasion entail?
What does tax evasion entail?
'Eminent domain' refers to which power?
'Eminent domain' refers to which power?
Which theory is associated with taxes being considered as a preferred charge?
Which theory is associated with taxes being considered as a preferred charge?
What does tax evasion entail?
What does tax evasion entail?
According to 'Eminent domain', what does it involve?
According to 'Eminent domain', what does it involve?
