Reference no: EM132731299
Problem 1. Which of the following describes full costs for a product for profitability? analysis?
A. Full product costs consist of direct? materials, direct labour and manufacturing overhead.
B. Full product costs do not include non-manufacturing costs.
C. Full product costs are narrower in scope than inventoriable product costs.
D. Full product costs include all costs of the value chain.
Problem 2. When the number of units produced is less than the number of units? sold, how does operating income under variable costing differ from operating income under absorption? costing?
A. It is higher than operating income under absorption costing.
B. It depends upon the amount of decline.
C. It is the same as operating income under absorption costing.
D. It is lower than operating income under absorption costing.
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