ACCT 212 Learnsmart Assignment 6 Liberty University Solution

Binders Company has total fixed costs of $500,000. They are sales price is $50 per unit and variable costs are $15 per unit. What is Binder's break-even volume in units?

Regardless of whether variable costing or absorption costing is used, if quantity produced differs from quantity sold, income will be ____ (similar, different, indeterminable).

When units produced equals units sold, income under absorption costing will be ______ (<,>,=) net income under variable costing.

True or False: When units produced are less than units sold, net income under absorption costing will less than net income computed under variable costing

Mandolin produced 70,000 units and sold 50,000 units. Their unit selling price is $20 and they have variable unit production costs of $10, variable selling expenses of three dollars and fixed overhead of $10,000. Compute Mandolin's net income under variable costing.

Landow Company uses variable costing for internal purposes and wants to restate income to that of absorption costing for external reporting purposes. Landow's income under variable costing is $630,000. Fixed production cost in ending inventory is $120,000 and $85,000 in beginning inventory. What is Landow's income under absorption costing?

Using absorption costing is __ (less, more) useful in evaluating the effectiveness of cost control by managers.

To restate variable costing income to absorption costing income, add fixed production cost in ____ (ending, beginning) inventory to variable costing income.

When using absorption costing when production is greater than sales, a portion of fixed overhead is allocation to:

Brother Company uses variable costing. Their direct materials are $8, direct labor is $6 and total overhead is $5 of which $3 is variable. What is Brother Company's total unit cost?

Loudon Company has the following unit costs: direct materials $6, direct labor $3, variable overhead $2, fixed overhead $1. Under absorption costing, total unit cost is:

In special order decisions, management should ensure that special order prices exceed __ cost.

If management incentives are tied to income under absorption costing, which of the following may occur (select all that apply):

Which costing method can be helpful to management in setting prices because it reflects full costs that sales must exceed for the company to be profitable?

An income statement which shows the excess of sales over variable costs is referred to as a _____ _____ income statement.

A system of rewarding managers by linking bonuses to income computed under absorption costing may result in:

When units produced are greater than units sold variable costing net income will be _________ (less, greater) than net income calculated under absorption costing.

Makum Company's is using a traditional, absorption, costing. Which of the items below would you see on Makum's income statement?

Service firms should focus on _____ costs in managerial decisions.

When using variable costing, costs are grouped by each of the following (select all the answers that all applicable):

Absorption costing includes all of the following costs are included in product costs except

Under the costing method only total costs which vary with changes in production volume are assigned to products.