Indicate whether the following statements are ‘true’ or ‘false’.
(i) Variable costing and absorption costing techniques are similar to job and process costing.
(ii) Direct materials, direct labour and variable overheads constitute the only relevant cost in variable costing.
(iii) While variable costing is useful for tax purposes, absorption costing is useful for internal reporting purposes.
(iv) Fixed manufacturing costs are considered product costs in absorption costing.
(v) Fixed manufacturing costs are period costs in the context of variable costing.
(vi) Like fixed manufacturing costs, selling and administrative costs are also treated differently in variable costing compared to absorption costing.
(vii) Fixed manufacturing costs form part of closing inventory both in variable costing and full costing methods.
(viii) Variable costing focuses on sales whereas the emphasis of full costing is on production.
(ix) Both variable costing and full costing methods provide the same results in terms of profit or loss when production (in units) is equal to sales (in units).
(x) Capacity variance concept is applicable in variable costing as well as in absorption costing.