Identify the true statement around variable costing. a. It treats addressed manufacturing overhead as a duration expense. b. It is the most acceptable product-costing approach for exterior reporting, c. It assigns all production expenses to the product. Od. It treats fixed offering overhead as a product price.

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blem #3 of 12 The complying with data relates to Alpha Company kind of. Units in beginning inventory Units created 24,000 Units offered (\$250 per unit) 20,000 Variable prices per unit: Direct materials Direct labor Variable overhead Fixed costs: Fixed overhead per unit created Fixed offering and also governmental expenses 150,000 Determine the value of ending inventory under variable costing. a. \$380,000 b. \$500,000 C. \$680,000 d. \$440,000 \$45
m #5 of 12 Which of the following is an example of a variable expense for a manufacturing unit? a. Lease payment b. Advertising price c. Plant supervisor's salary d. Direct products expense
em #6 of 12 For planning and manage functions, a. combined prices should be considered sunk prices b. blended expenses have to be separated right into variable and fixed components c. just the fixed component of combined prices must be thought about d. combined prices need to be ignored

solution-3 alternative (d) is correct. Direct Material Cost auto is an of variable Costing. example solution - 4) option (b) is brrect, For planning and Control purposes, all kinds of shed whether it is variable or fixed are taken into Consideration, blended expenses are those Costs which containe both fired and Variable Component.
Problem H3 (solution/ a) Calculation of cshedding inventory (in units) 24000 Add! hess! opening inventory units produced systems marketed Virg 20,000 4,000 unit inventory
1 Calculation of the value of Inventory under variable Costing - 140,000 → 240,000 → Direct Material (4000 units X \$35) Direct labour (4000 unit x \$60) variable overhead (4000 unit x \$30) worth of legt of cshedding inventory choice (6) is correct. 120,000 500,000
option (a) It Solution - 1) treats fixed production overhead as a period Costo In variable Costing strategy, just Variable costs are considered product Costs and also addressed overheads are Considered as duration Cost Hence, Fixed production overhead is - Hlated as duration lost in variable Costing approach

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