What Is the Difference Between Full Absorption Costing and Variable

question 93

Multiple Choice

What is the difference between full absorption costing and variable costing?

• A)In full absorption costing,all of the non-manufacturing costs are expensed.In variable costing,all of the non-manufacturing expenses are included in the cost of the product.
• B)In full absorption costing,fixed manufacturing overhead is expensed.In variable costing,fixed manufacturing overhead is included in the cost of the product.
• C)In full absorption costing,fixed manufacturing overhead is included in the cost of the product.In variable costing,fixed manufacturing overhead is expensed.
• D)Variable costing must be used for external financial reports while full absorption costing can only be used for internal reporting.

Record journal entries for estimating, adjusting, and writing off uncollectible accounts receivable.

Understand the impact of the allowance method on financial statements.

Differentiate between the allowance method and the direct write-off method.

Record and understand the implications of collecting an account previously written off.

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