Match the Type of Income Statement to the Costs It

question 96

Multiple Choice

Match the type of income statement to the costs it includes.
-Variable selling expense

• A)Variable costing income statement
• B)Absorption costing income statement
• C)Both types of income statements

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Definitions:

Principle of Exceptions

A management principle focusing attention and resources on areas that deviate significantly from standards or expectations.

Standard Costs

Predetermined costs for materials, labor, and overhead used as a benchmark for evaluating actual production costs.

Factory Overhead Cost Variance

The difference between the actual factory overhead costs incurred and the expected (or budgeted) overhead costs based on standard cost accounting.

Flexible Factory Overhead Budget

A budget that adjusts overhead costs in response to changes in actual production or activity, allowing for more accurate costing.