ACCT 2025 EXAM 2 2024– 2025
(Combined) EXAM QUESTIONS AND
CORRECT VERIFIED ANSWERS GRADED A+
The difference between absorption costing net operating
income and variable costing net operating income can be
explained by the way these two methods account for
_________
fixed overhead costs
Absorption costing income statements ignore _________
variable and fixed cost distinctions
When the number of units produced is greater than the
number of units sold, variable costing net operating
income will be _________
,less than absorption costing net operating income
is direct labor a period or product cost?
product
is fixed manufacturing overhead a period or product cost?
period
is variable manufacturing overhead a period or product
cost
product
is fixed selling and administrative expenses a product or
period cost
period
variable selling and administrative expenses a period or
product cost
period
contribution margin
Sales - Variable Costs
When the units produced are equal to the units sold, the
net operating income computed using the variable costing
method is _________ the net operating income using the
absorption costing method.
, is equal to
When the units produced exceed the units sold, the net
operating income computed using the variable costing
method is _________ the net operating income using the
absorption costing method.
is less than
When the units produced are less than the units sold, the
net operating income computed using the variable costing
method is _________ the net operating income using the
absorption costing method.
is greater than
Which of the following costing approaches is best suited
for cost-volume-profit analysis?
variable
Which of the following statements about the segment
margin is not true?
The segment margin is obtained by deducting the
common fixed costs that have been allocated to a
segment from that segment's contribution margin.
Max, Incorporated, has two divisions, South Division and
North Division. South Division's sales, contribution margin
(Combined) EXAM QUESTIONS AND
CORRECT VERIFIED ANSWERS GRADED A+
The difference between absorption costing net operating
income and variable costing net operating income can be
explained by the way these two methods account for
_________
fixed overhead costs
Absorption costing income statements ignore _________
variable and fixed cost distinctions
When the number of units produced is greater than the
number of units sold, variable costing net operating
income will be _________
,less than absorption costing net operating income
is direct labor a period or product cost?
product
is fixed manufacturing overhead a period or product cost?
period
is variable manufacturing overhead a period or product
cost
product
is fixed selling and administrative expenses a product or
period cost
period
variable selling and administrative expenses a period or
product cost
period
contribution margin
Sales - Variable Costs
When the units produced are equal to the units sold, the
net operating income computed using the variable costing
method is _________ the net operating income using the
absorption costing method.
, is equal to
When the units produced exceed the units sold, the net
operating income computed using the variable costing
method is _________ the net operating income using the
absorption costing method.
is less than
When the units produced are less than the units sold, the
net operating income computed using the variable costing
method is _________ the net operating income using the
absorption costing method.
is greater than
Which of the following costing approaches is best suited
for cost-volume-profit analysis?
variable
Which of the following statements about the segment
margin is not true?
The segment margin is obtained by deducting the
common fixed costs that have been allocated to a
segment from that segment's contribution margin.
Max, Incorporated, has two divisions, South Division and
North Division. South Division's sales, contribution margin
