21.On the variable costing income statement, variable costs are deducted from contribution margin to yieldmanufacturing margin.
a.True
b.False
22.On the variable costing income statement, the amounts representing the difference between the contribution marginand income from operations is the fixed manufacturing costs and fixed selling and administrative expenses.
a.True
b.False
23.The contribution margin and the manufacturing margin are usually equal.
a.True
b.False
24.For a period during which the quantity of inventory at the end was larger than that at the beginning, income fromoperations reported under variable costing will be larger than income from operations reported under absorptioncosting.
a.True
b.False
25.For a period during which the quantity of inventory at the end was larger than that at the beginning, income fromoperations reported under variable costing will be smaller than income from operations reported under absorptioncosting.
a.True
b.False
26.For an accounting period during which the quantity of inventory at the end was smaller than the quantity at thebeginning, income from operations reported under variable costing will be larger than income from operationsreported under absorption costing.
a.True
b.False
27.For a period during which the quantity of inventory at the end was smaller than that at the beginning, income fromoperations reported under variable costing will be smaller than income from operations reported under absorptioncosting.
a.True
b.False
28.For a period during which the quantity of inventory at the end equals the inventory at the beginning, income fromoperations reported under variable costing will be smaller than income from operations reported under absorptioncosting.
a.True
b.False
29.For a period during which the quantity of inventory at the end equals the inventory at the beginning, income fromoperations reported under variable costing will equal income from operations reported under absorption costing.
a.True
b.False
30.For a period during which the quantity of product manufactured exceeded the quantity sold, income from operationsreported under absorption costing will be smaller than income from operations reported under variable costing.
a.True
b.False