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  3. Liberty ACCT 212 Chapter 6 Reading Assignment Answers Complete Solutions

Liberty ACCT 212 Chapter 6 Reading Assignment Answers Complete Solutions

Complete many different versions to get an A on your grade!

The below shown is just one version sample.

Makum Company’s is using variable costing. Which of the items below would you see on Makum’s income statement?

When units produced equals units sold, income under variable costing as compared to net income under absorption costing will be

The costing system which is considered acceptable for reporting under U.S. GAAP is

Absorption costing includes all of the following costs except

A contribution margin income statement shows:

An income which separately reports variable costs from fixed costs is known as a(n)

Commonwealth Company has the following unit costs: direct materials $2, direct labor $4, variable overhead $1, fixed overhead $3. Under the absorption costing method, what is the total unit cost?

Contribution margin is the excess of

Cost information from _____________ (neither, both) costing method (s) is helpful to management is setting

Differences income between variable costing and absorption costing is due to

Galen Company income under variable costing is $1,050,000. Fixed production costs in ending inventory are $300,000 and $250,000 in beginning inventory. What is Galen Company’s income under absorption costing?

Naples Company produced 650,000 units and sold 500,000 units. Their unit selling price is $10. Cost of goods sold is $6 per unit. Fixed selling expenses are $10,000 and variable selling and administrative expenses are $3 per unit. Compute Naple’s net income under absorption costing.

Production planning is important because producing too much can lead to __________ (excess/ insufficient) inventory.

Since service firms do not produce inventory, they should focus primarily on

The effective cost control system will hold managers responsible only for their ___________ costs.

The main difference between absorption and variable costing is their treatment of

The variable costing method includes all of the following (select all that apply)

To assist management in controlling costs, it is best to

Trudy Company is using variable costing. Which of the following items would be shown on Trudy’s income statement? Select all that are correct.

True or False: Absorption costing is used for external reporting

Under absorption costing, expenses are not separated into variable and _____________ components.

Under __________ (absorption, variable) costing method, direct materials, direct labor and factory overhead are assigned to products.

When deciding whether or not to accept a special order, management should consider whether the special order price exceeds

Freshmart, Inc., began operations last year when it produced and sold the same number of units. This year, the company produced 1,000 units and sold 750 units at a selling price of $100 per unit. Fixed overhead costs totaled $30,000 and fixed selling and administrative expenses were $15,000. Variable production costs were $25.00 per unit while variable selling and administrative expenses were $10.00 per unit. Using absorption costing, net income was:

Hamilton Company has decided to use variable costing and has identified the following costs: direct materials $5, direct labor $10, variable overhead $3, fixed overhead $2. What is Hamilton Company’s total unit cost?

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