1.In determining cost of goods sold, two alternate costing concepts can be used: absorption costing and variablecosting.
a.True
b.False
2.In determining cost of goods sold, two alternate costing concepts can be used: direct costing and variable costing.
a.True
b.False
3.Fixed factory overhead costs are included as part of the cost of products manufactured under the absorptioncosting concept.
a.True
b.False
4.Under absorption costing, the cost of finished goods includes direct materials, direct labor, and all factory overhead.
a.True
b.False
5.Under absorption costing, the cost of finished goods includes only direct materials, direct labor, and variable factoryoverhead.
a.True
b.False
6.In variable costing, the cost of products manufactured is composed of only those manufacturing costs that increaseor decrease as the volume of production rises or falls.
a.True
b.False
7.In variable costing, fixed costs do
not
become part of the cost of goods manufactured, but are considered anexpense of the period.
a.True
b.False
8.Variable costing is also known as direct costing.
a.True
b.False
9.Property taxes on a factory building would be included as part of the cost of products manufactured under theabsorption costing concept.
a.True
b.False
10.The taxes on the factory superintendent's salary would be included as part of the cost of products manufacturedunder the variable costing concept.
a.True
b.False