COMM-2016EL Study Guide - Midterm Guide: Gross Margin, Income Statement

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All variable manufacturing costs and all fixed manufacturing costs are inventoriable costs . Product costs include direct materials, direct labour, and both variable and fixed manufacturing overhead costs. Inventory on balance sheet includes direct materials, direct labour and both variable and fixed manufacturing costs. Can lead to poorer decision making as income can be manipulated by a change in inventory levels! (hint) Only variable manufacturing costs are included as. Product costs include direct materials, direct labour and variable manufacturing overhead costs. Inventory on balance sheet includes direct materials, direct labour and variable manufacturing overhead costs. Can lead to better decision making since income cannot be manipulated by a change in inventory levels. Easy to do cost volume profit (cvp) analysis. Not acceptable under cpa handbook, but is allowed by. Ccra as long as the method used give the truer picture of the taxpayer"s income! also known as contribution approach or direct.

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