71.Under variable costing, which of the following costs would notbe included in finished goods inventory?

a.direct labor cost

b.direct materials cost

c.variable factory overhead cost

d.fixed factory overhead cost

 

72.Under variable costing, which of the following costs would be included in finished goods inventory?

a.neither variable nor fixed factory overhead cost

b.both variable and fixed factory overhead cost

c.only variable factory overhead cost

d.only fixed factory overhead cost

 

 

73.Under variable costing, which of the following costs would be included in finished goods inventory?

a.salary of salesperson

b.salary of vice-president of finance

c.wages of carpenters in a furniture factory

d.straight-line depreciation on factory equipment

 

 

 

74.Under variable costing, which of the following costs would notbe included in finished goods inventory?

a.wages of machine operator

b.steel costs for a machine tool manufacturer

c.salary of factory supervisor

d.electricity used by factory machinery

 

75.Which of the following would be included in the cost of a product manufactured according to absorption costing?

a.advertising expense

b.sales salaries

c.depreciation expense on factory building

d.office supplies costs

 

 

76.Which of the following would be included in the cost of a product manufactured according to variable costing?

a.sales commissions

b.office supply costs

c.interest expense

d.direct materials

 

 

77.On the variable costing income statement, the figure representing the difference between manufacturing marginand contribution margin is the:

a.fixed manufacturing costs

b.variable cost of goods sold

c.fixed selling and administrative expenses

d.variable selling and administrative expenses

 

78.In the variable costing income statement, deduction of variable selling and administrative expenses frommanufacturing margin yields:

a.differential margin

b.contribution margin

c.gross profit

d.marginal expenses

 

 

79.The amount of income under absorption costing will equal the amount of income under variable costing when unitsmanufactured:

a.exceed units sold

b.equal units sold

c.are less than units sold

d.are equal to or greater than units sold

 

 

80.The amount of income under absorption costing will be less than the amount of income under variable costing whenunits manufactured: