Solved by verified expert :1. Under variable costing, all variable costs are
treated as product costs.
True False
2. Under variable costing, fixed manufacturing
overhead cost is treated as a product cost.
True False
3. The unit product cost under absorption costing does
not include fixed manufacturing overhead cost.
True False
4. Variable manufacturing overhead costs are treated
as period costs under both absorption and variable costing.
True False
5. When reconciling variable costing and absorption
costing net operating income, fixed manufacturing overhead costs deferred in
inventory under absorption costing should be added to variable costing net
operating income to arrive at the absorption costing net operating
income.
True False
6. When production is less than sales for the period,
absorption costing net operating income will generally be less than variable
costing net operating income.
True False
7. Absorption costing is more compatible with
cost-volume-profit analysis than is variable costing.
True False
8. Contribution margin and segment margin mean the
same thing.
True False
9. Assuming that a segment has both variable expenses
and traceable fixed expenses, an increase in sales should increase profits by
an amount equal to the sales times the segment margin ratio.
True False
10. The salary of the treasurer of a corporation is an
example of a common cost which normally cannot be traced to product
segments.
True False
