Ch. 6 Accounting
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1. Under variable costing, variable production costs are False
not treated as product costs.
2. Under variable costing, fixed manufacturing overhead True
cost is not treated as a product cost.
3. Under variable costing, product costs consist of di- True
rect materials, direct labor, and variable manufactur-
ing overhead.
4. The costs assigned to units in inventory are typically True
lower under variable costing than under absorption
costing.
5. Under absorption costing, fixed manufacturing over- True
head is treated as a product cost.
6. Under absorption costing, fixed manufacturing over- False
head cost is not included in product cost.
7. Under conventional absorption costing, the fixed costs True
associated with idle production capacity are not includ-
ed as part of the product cost.
8. Under absorption costing, it is possible to defer a por- True
tion of the fixed manufacturing overhead costs of the
current period to future periods through the inventory
account.
9. The principal difference between variable costing and B. whether fixed manufac-
absorption costing centers on: turing costs should be in-
cluded in product costs.
A.
, Ch. 6 Accounting
Study online at https://quizlet.com/_3bgp0n
whether variable manufacturing costs should be in-
cluded in product costs.
B.
whether fixed manufacturing costs should be included
in product costs.
C.
whether fixed manufacturing costs and fixed selling
and administrative costs should be included in product
costs.
D.
whether selling and administrative costs should be
included in product costs.
10. Under variable costing, fixed manufacturing overhead D. Expensed as a period
is: cost.
A.
carried in a liability account.
B.
carried in an asset account.
C.
ignored.
Study online at https://quizlet.com/_3bgp0n
1. Under variable costing, variable production costs are False
not treated as product costs.
2. Under variable costing, fixed manufacturing overhead True
cost is not treated as a product cost.
3. Under variable costing, product costs consist of di- True
rect materials, direct labor, and variable manufactur-
ing overhead.
4. The costs assigned to units in inventory are typically True
lower under variable costing than under absorption
costing.
5. Under absorption costing, fixed manufacturing over- True
head is treated as a product cost.
6. Under absorption costing, fixed manufacturing over- False
head cost is not included in product cost.
7. Under conventional absorption costing, the fixed costs True
associated with idle production capacity are not includ-
ed as part of the product cost.
8. Under absorption costing, it is possible to defer a por- True
tion of the fixed manufacturing overhead costs of the
current period to future periods through the inventory
account.
9. The principal difference between variable costing and B. whether fixed manufac-
absorption costing centers on: turing costs should be in-
cluded in product costs.
A.
, Ch. 6 Accounting
Study online at https://quizlet.com/_3bgp0n
whether variable manufacturing costs should be in-
cluded in product costs.
B.
whether fixed manufacturing costs should be included
in product costs.
C.
whether fixed manufacturing costs and fixed selling
and administrative costs should be included in product
costs.
D.
whether selling and administrative costs should be
included in product costs.
10. Under variable costing, fixed manufacturing overhead D. Expensed as a period
is: cost.
A.
carried in a liability account.
B.
carried in an asset account.
C.
ignored.
