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COMM 225 CHAPTER 8 EXAM QUESTIONS & ANSWERS Concordia University
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COMM 225 CHAPTER 8 EXAM QUESTIONS & ANSWERS Concordia University
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COMM 225 CHAPTER 8 EXAM QUESTIONS & ANSWERS 2024-2025Concordia University
Full costing is equivalent to absorption costing.
False
True
resp_1
In full or absorption costing, all manufacturing costs are charged to the product.
True
resp_1
False
Variable costing is the approach used for external reporting under generally accepted accounting principles.
False
resp_2
True
Fixed manufacturing costs are not charged to the product under variable costing.
False
True
resp_1
Fixed manufacturing overhead is a period cost under absorption costing.
, True
False
resp_2
Manufacturing cost per unit will be higher under variable costing than under absorption costing.
False
resp_2
True
When units sold exceed units produced, income under absorption costing is higher than income under variable costing.
False
resp_2
True
When absorption costing is used for external reporting, variable costing can still be used for internal reporting purposes.
True
resp_1
False
The use of absorption costing facilitates cost-volume-profit analysis.
True
False
resp_2
, When absorption costing is used, management may be tempted to overproduce in a given period in order to increase net
income.
True
resp_1
False
Which cost is not charged to the product under variable costing?
fixed manufacturing overhead
resp_4
direct materials
variable manufacturing overhead
direct labour
Obama Company sells its product for $40 per unit. During 2009, it produced 60,000 units and sold 50,000 units (there was no
beginning inventory). Costs per unit are: direct materials $10, direct labour $6, and variable overhead $2. Fixed costs are:
$480,000 manufacturing overhead, and $60,000 selling and administrative expenses.
The per unit manufacturing cost under absorption costing is
$18.
resp_3 $26.
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