ACNT 2402 Chapter 06 -Questions and Answers 2023& study guide with complete solution

Chapter 06 -- Variable Costing and Segment Reporting: Tools for Management – Study Guide 1. Under variable costing, variable production costs are not treated as product costs. FALSE 2. Under variable costing, fixed manufacturing overhead cost is not treated as a product cost. TRUE 3. Under variable costing, product costs consist of direct materials, direct labor, and variable manufacturing overhead. TRUE 4. The costs assigned to units in inventory are typically lower under variable costing than under absorption costing. TRUE 5. Under variable costing, product cost does not contain any fixed manufacturing overhead cost. TRUE 6. Under absorption costing, fixed manufacturing overhead is treated as a product cost. TRUE 7. Under absorption costing, fixed manufacturing overhead cost is not included in product cost. FAL