110.Product costs are reported on the income statement above gross margin. True False 111.The absorption costing approach uses the contribution margin income statement format. True False ...

110.Product costs are reported on the income statement above gross margin.



True False

111.The absorption costing approach uses the contribution margin income statement format.



True False

112.Generally accepted accounting principles require that a company use variable costing for financial reporting.



True False

113.Use of absorption costing allows a company to increase its profits by increasing the level of production of its products.



True False

114.Under variable costing, all variable production costs are expensed when incurred.



True False

115.Absorption costing provides incentives for a company to hold excess inventory, which may increase the company's costs.



True False

116.Many companies use variable costing for internal reporting and evaluation of managers.



True False