4. Which of the following is the key argument in favor of absorption costing? a. Absorption costing...

4. Which of the following is the key argument in favor of absorption costing?

a.

Absorption costing overstates the balance sheet value of inventories.

b.

Variable factory overhead is a period cost.

c.

Fixed manufacturing overhead is difficult to allocate properly.

D. Fixed manufacturing overhead is necessary for the production of a product.

5. The key argument in favor of direct costing is that fixed manufacturing overhead costs should be accounted for as a period cost. What is the rationale behind this?

A. Fixed manufacturing overhead costs occur regardless of level of production and are, therefore, a function of time.

B. Fixed manufacturing overhead costs are generally immaterial in amount.

C. Allocation of fixed manufacturing costs is arbitrary at best.

D. Fixed manufacturing costs in total change as production changes

Expert Solution

ekkarill92 answered 1 year ago

Risk Management 1/ Which of following is an argument offer cited by those who favor no...

Risk Management 1/ Which of following is an argument offer cited by those who favor no fault insurance : A: no fault laws decree the percentage of the premium dollar that pays for investigation and legal cost . B: no fault laws have resulted in significant increases in auto insurance cost . C: No fault benefits always compensate accidents victims for the economic value pain and suffering. 2/ When a high risk driver applies for auto insurance, the application is...

Which is NOT an argument in favor of central bank independence: A. It avoids the time...

Which is NOT an argument in favor of central bank independence: A. It avoids the time inconsistency problem B. It supports fiscal discipline C. It puts experts in charge of monetary policy D. It allows the Fed to implement unpopular policies for the greater good E. It fosters the synchronization of monetary and fiscal policy. Group of answer choices E. It fosters the synchronization of monetary and fiscal policy. A. It avoids the time inconsistency problem B. It supports fiscal...

Explain why variable costing and absorption costing can result in different period incomes. Support your argument...

Explain why variable costing and absorption costing can result in different period incomes. Support your argument by an example which spans more than one accounting period.

1. Determine the following information using absorption costing and variable costing: Absorption costing a. Manufacturing cost...

1. Determine the following information using absorption costing and variable costing: Absorption costing a. Manufacturing cost _______________ b. Per-unit cost _______________ c. Cost of ending inventory _______________ Variable costing a. Manufacturing cost _______________ b. Per-unit cost _______________ c. Cost of ending inventory _______________ Basic facts: Direct materials $1,000 Direct labor $2,000 Variable overhead $1,500 Fixed overhead $1,000 Units produced 100 Units sold 80 No beginning inventory 2. What is the prime cost per unit and conversion cost per unit: a....

Which argument do you favor - persuading a company to incorporate a CSR perspective voluntarily or...

Which argument do you favor - persuading a company to incorporate a CSR perspective voluntarily or forcing them to change using legislation? Why? Which of these two approaches is ideal? Which is more realistic? Provide (1) moral, (2) logical and (3) economic evidence to support your argument (based on additional research; properly cite your sources).

In at least 250 words, explain the key similarities and differences between absorption costing and variable...

In at least 250 words, explain the key similarities and differences between absorption costing and variable costing. Be specific!

(1) describe one argument Brock provides in favor of active voluntary euthanasia (for the argument, provide...

(1) describe one argument Brock provides in favor of active voluntary euthanasia (for the argument, provide premises and conclusion); (2) describe one argument Callahan gives to oppose active voluntary euthanasia (for the argument, provide premises and conclusion).

Which income statement can be manipulated easier, absorption costing or variable costing and why?

Absorption and variable costing:

The Dorset Corporation produces and sells a single product. The following data refer to the year just completed:Beginning inventory 0Units produced 9,000Units sold 7,000Selling price per unit $ 47Selling and administrative expenses:Variable per unit $ 4Fixed per year $ 58,000Manufacturing costs:Direct materials cost per unit $ 10Direct labor cost per unit $ 6Variable manufacturing overhead cost per unit $ 5Fixed manufacturing overhead per year $ 90,000Assume that direct labor is a variable cost.Required:a. Prepare an income statement for the year...

Question 18 Give one argument in favor of hedging transaction exposure and one argument against hedging...

Question 18 Give one argument in favor of hedging transaction exposure and one argument against hedging transaction exposure.

Question