COMMERCE 2AB3 Final: ch09tif

• School: McMaster University
• Department: Commerce
• Course: COMMERCE 2AB3
• Professor: Karim Karim

Document Summary

True/false: absorption costing absorbs only variable manufacturing costs, variable costing includes all variable costs both manufacturing and. Absorption costing absorbs all manufacturing costs, both fixed and variable. Variable costing includes only manufacturing variable costs in inventory: under both variable and absorption costing, all variable manufacturing costs are. Answer: true: under variable costing, fixed manufacturing costs are treated as an expense of the. The contribution-margin format of the income statement is used with absorption costing. The contribution-margin format of the income statement is used with variable costing. The contribution-margin format of the income statement distinguishes manufacturing costs from nonmanufacturing costs. The contribution-margin format of the income statement distinguishes variable costs from fixed costs. The gross-margin format of the income statement highlights the lump sum of fixed manufacturing costs. The gross-margin format of the income statement distinguishes manufacturing costs from nonmanufacturing costs, but does not highlight the lump sum of fixed manufacturing costs.