Accounting 2037 Exam 2 Gingrich Questions Fully Solved.

variable costing - Answer -where DM, DL, and variable OH costs are included in product costs -fixed is in period costs -useful in managerial but not allowed in financial absorption costing - Answer -where DM, DL, variable OH, fixed OH are included in product costs -this method is required for financial GAAP -can result in misleading product costs information and poor managerial decisions When is fixed OH expensed in Variable costing - Answer -expensed at time of unites are produced When is fixed OH expensed in absorption costing - Answer -expensed at time units are sold contribution margin income statement - Answer -separates variable and fixed costs -highlights the CM (sales-VC) income under absorption costing is _______ when more units are produced than are sold - Answer higher income under absorption costing is _______ when fewer units are produced than sold - Answer lower Example of Fixed costs - Answer "selling and administration expenses" budgeting - Answer -the planning future business actions and expressing them as formal plans, helps to achieve this coordination budget - Answer -formal statement of company plans, expressed in monetary units -unlike long-term strategic plans, budgets typically cover shorter periods such as month, quarter, or years -useful in controlling operations