Review Exam Part 1 – Flashcards
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False
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T/F Total Variable costs decrease as the volume decreases.
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Relevant Range of operations
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A term describing a firm's normal range of operating activities is
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Profit, loss, and break-even on a total basis
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A CVP graph presents data on
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Advertising cost
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What is not a product cost?
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True
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T/F Absorption costing assigns all manufacturing costs to products
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True
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T/F Only manufacturing costs that change in total with changes in production level are included in product costs.
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True
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T/F Variable costing treats fixed overhead as a period cost.
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False
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T/F Fixed inventory costs are treated in the same manner under absorption and variable costing.
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only accept the order if the incremental revenue exceeds total variable product
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When evaluating a special order, management should
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Direct labor, direct material, variable manufacturing overhead, and fixed manufacturing overhead
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What costs are assigned to the product under the absorption costing method?
