Podcast
Questions and Answers
What is the total unit product cost per T-shirt for Happy Yarn Inc.?
What is the total unit product cost per T-shirt for Happy Yarn Inc.?
- P$2.50
- P$5.00
- P$3.50
- P$4.50 (correct)
What is the net operating income for Happy Yarn Inc. using the variable costing method?
What is the net operating income for Happy Yarn Inc. using the variable costing method?
- P$8,000
- P$4,000 (correct)
- P$12,000
- P$17,000
In a variable costing income statement, what is included in the cost of goods sold?
In a variable costing income statement, what is included in the cost of goods sold?
- Only variable manufacturing costs (correct)
- All manufacturing costs
- Fixed manufacturing costs
- Variable selling and administrative expenses
What impact does an increase in production volume have on fixed costs in a variable costing income statement?
What impact does an increase in production volume have on fixed costs in a variable costing income statement?
Which costing method would show a higher net income when production exceeds sales?
Which costing method would show a higher net income when production exceeds sales?
Which method, between variable costing and absorption costing, focuses on how changes in production volume affect net operating income?
Which method, between variable costing and absorption costing, focuses on how changes in production volume affect net operating income?
In a firm using variable costing, how do profits behave with sales fluctuations?
In a firm using variable costing, how do profits behave with sales fluctuations?
In a variable costing income statement, how are fixed manufacturing costs treated?
In a variable costing income statement, how are fixed manufacturing costs treated?
When production levels surpass normal capacity in a direct costing system, what is the inventory value comparison between companies?
When production levels surpass normal capacity in a direct costing system, what is the inventory value comparison between companies?
How do unit product costs change in variable costing with varying production quantities?
How do unit product costs change in variable costing with varying production quantities?
What happens to fixed costs per unit when the activity level increases within the relevant range?
What happens to fixed costs per unit when the activity level increases within the relevant range?
In an income statement using the direct costing method, where are fixed selling and administrative expenses typically included?
In an income statement using the direct costing method, where are fixed selling and administrative expenses typically included?
What are unabsorbed fixed overhead costs in an absorption costing system?
What are unabsorbed fixed overhead costs in an absorption costing system?
When comparing variable costing and absorption costing, under what condition will both methods show the same net operating income?
When comparing variable costing and absorption costing, under what condition will both methods show the same net operating income?
What is a key difference between absorption costing and variable costing related to profits and sales fluctuations?
What is a key difference between absorption costing and variable costing related to profits and sales fluctuations?
How does variable costing net income compare to absorption costing net income when production is lower than sales?
How does variable costing net income compare to absorption costing net income when production is lower than sales?
What characterizes variable costing with respect to the treatment of fixed selling and administrative expenses?
What characterizes variable costing with respect to the treatment of fixed selling and administrative expenses?
