What type of business is process costing? - Answer Flour Manufacturer
What are absorption costing product costs? - Answer Materials, Labor, Variable Manufacturing
Overhead and Fixed Manufacturing Overhead (No selling and general admin)
, What are variable costing product costs? - Answer Materials, Labor and Variable Manufacturing
Overhead (no fixed costs)
Absorption Cost - Answer (((Material+Labor+Variable Manufacturing Overhead)*Units Produced)+Fixed
Costs)/Units Produced
Net Income - Answer Sales Revenue - Expense (Revenue - (Absorption Cost*Units Sold) - (Variable
SG&A*Units Sold)-Fixed SG&A
Fixed Manufacturing Overhead Per Unit - Answer (COGS-Variable Manufacturing)/Units Sold
How do variable and absorption costing compare? - Answer Net income under absorption costing is
higher than variable costing when units produced are greater than units sold
Gross Profit Margin - Answer ((# Units Sold*Price per Unit)-((# Units
Sold*(Materials+Labor+Overhead)))/(# Units Sold*Price Per Unit)
What is the most reliable determinant for taking on a project - Answer Net Present Value (NPV)
What is the Present Value Factor - Answer Investment/Return
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