What type of business is process costing? - CORRECT ANSWER- Flour Manufacturer
, What are absorption costing product costs? - CORRECT ANSWER- Materials, Labor,
Variable Manufacturing Overhead and Fixed Manufacturing Overhead (No selling and
general admin)
What are variable costing product costs? - CORRECT ANSWER- Materials, Labor and
Variable Manufacturing Overhead (no fixed costs)
Net Income - CORRECT ANSWER- Sales Revenue - Expense (Revenue - (Absorption
Cost*Units Sold) - (Variable SG&A*Units Sold)-Fixed SG&A
Fixed Manufacturing Overhead Per Unit - CORRECT ANSWER- (COGS-Variable
Manufacturing)/Units Sold
How do variable and absorption costing compare? - CORRECT ANSWER- Net income
under absorption costing is higher than variable costing when units produced are greater than
units sold
Gross Profit Margin - CORRECT ANSWER- ((# Units Sold*Price per Unit)-((# Units
Sold*(Materials+Labor+Overhead)))/(# Units Sold*Price Per Unit)
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