Indicate Whether Each of the Following Statements Is True or False

question 70

Short Answer

Indicate whether each of the following statements is true or false.
In a period when finished goods decreases,use of absorption costing results in higher net income than variable costing.______
Direct materials and direct labor usually behave as variable costs.______
Generally accepted accounting principles allow a company to use either variable or absorption costing for external financial reporting.______
Under absorption costing,fixed manufacturing costs are expensed in the period incurred.______
Increasing the number of units produced during a period increases net income under absorption costing because the cost of goods sold decreases.______

---

Definitions:

Importer

An entity that brings goods or services into a country from abroad for sale.

Proportions

Statements that two ratios are equal, showing the equivalence between two sets of numbers or measurements.

Unknown Quantities

Unknown Quantities are values in mathematical equations or problems that have not been determined or identified yet.

High-Definition Movie

A movie with a resolution that significantly exceeds that of standard-definition, providing a sharper and clearer image.