Review Exam Part 1

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

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