Reference no: EM133004367

Problem 1: What is the primary difference between variable and absorption costing?

Group of answer choices

Option 1: inclusion of fixed selling expenses in product costs

Option 2: inclusion of variable factory overhead in period costs

Option 3: inclusion of fixed selling expenses in period costs

Option 4: inclusion of fixed factory overhead in product costs

Problem 2: Which of the following would not be an example of a fixed cost?

Group of answer choices

Option 1: The rent paid for a warehouse

Option 2: The electricity bill paid for production

Option 3: The depreciation on a factory building

Option 4: The property taxes paid on real estate.

Problem 3: The _____ is a variable cost for Sam's restaurant business.

Group of answer choices

Option 1: cost of raw materials

Option 2: salary of the manager

Option 3: depreciation on equipment

Option 4: rental cost of the building