9.1
method of inventory costing in which all variable manufacturing costs (direct and indirect) are included as inventoriable costs.
Variable Costing
Which cost system uses the contribution method format for their Income Statement
Variable
What costing method is used for external reporting
Absorption
What is another term for throughput costing
super-variable costing
method of inventory costing in which all variable manufacturing costs and all fixed manufacturing costs are included as inventoriable costs
Absorption costing
Why does the variable system use the contribution Margin
It highlights Variable cost
Under the absorption system, how can managers increase operating income
Produce more inventory
what is the only inventoriable cost under the throughput method
Direct materials cost
False
True or False: A Fixed Marketing Cost is included in both types of income statement
True
who would argue that it is unethical for managers to take actions that are intended solely to increase their compensation rather than to improve the company
shareholders and supporters of good corporate governance
True or false: the throughput method greater incentives managers to increase inventory
False
Under which cost system will you comparatively have higher inventoriable costs
Absorption
Which cost system uses variable manufacturing cost to calculate COGS
Variable
who can implement checks and balances to prevent unethical implementation
Top Management
How do you calculate the throughput margin
(Revenues - Direct materials of cost of goods sold)
Which system interprets variable manufacturing costs as an inventoriable costs
Both
What is the basis for difference between calculations of the absorption and variably systems
How fixed manufacturing costs are accounted for
Why would a plant manager defer maintenance of equipment beyond the current period
To increase production
What costing system would comparatively result in the largest amount of expenses for a current periods income statement
Throughput costing system