Which of the Following Statements If False

question 25

Multiple Choice

Which of the following statements if false?

• A)In full or absorption costing, all manufacturing costs are charged to the product.
• B)Fixed manufacturing costs are not charged to the product under variable costing.
• C)Fixed manufacturing overhead is a period cost under absorption costing.
• D)Full costing is equivalent to absorption costing.

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Definitions:

Variable Costing

A method of costing that includes only variable costs - costs that change with the level of output - in the cost of goods sold and treats fixed overhead costs as period expenses.

For The Month

A phrase typically used to specify financial or operational activities or measurements within a specific month.

Variable Costing

An accounting method that only includes variable costs (costs that change with production levels) in the cost of goods sold and calculates fixed costs as period costs.

Net Operating Income

The total revenue from a business's operations minus its operating expenses, excluding taxes and interest.