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Why aren't selling and administrative costs not included in variable costing?
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Is direct material a selling cost?
is direct cost a? Selling cost, manufacturing costs, direct, manufacturing cost indirect, general and administrative cost, fixed cost , variable cost, is direct cost a? Selling cost, manufacturing costs, direct, manufacturing cost indirect, general and administrative cost, fixed cost , variable cost,
Is payroll a variable cost?
If it is administrative payroll then it will not change as change in production of units so in this case it will be fixed cost. If it is selling payroll and if it is vary with the number of units produce or sale then it is variable cost.
Is royalty selling or administrative expense?
administrative
Is fire a selling cost manufacturing cost direct manufacturing cost indirect administraitve cost fixed cost or variable cost?
Is fire a selling cost, direct manufacturing cost, indirect manufacturing cost, administrative cost, foxed cost or variable cost.
Is advertising a selling expense or an administrative expense?
selling
Under variable costing variable selling and administrative costs are included in product costs?
No. They are not.they are part of period costs.
Are selling and administrative expenses treated as product costs or period costs under variable costing?
Period Costs.
Are selling and administrative expenses treated as product costs or as period costs under variable costing?
Period Costs.
If selling prices sales mix and cost structure remain the same do profits and sales increase using variable costing?
Equal
Is direct material a selling cost?
is direct cost a? Selling cost, manufacturing costs, direct, manufacturing cost indirect, general and administrative cost, fixed cost , variable cost, is direct cost a? Selling cost, manufacturing costs, direct, manufacturing cost indirect, general and administrative cost, fixed cost , variable cost,
Is payroll a variable cost?
If it is administrative payroll then it will not change as change in production of units so in this case it will be fixed cost. If it is selling payroll and if it is vary with the number of units produce or sale then it is variable cost.
Is royalty selling or administrative expense?
administrative
Is fire a selling cost manufacturing cost direct manufacturing cost indirect administraitve cost fixed cost or variable cost?
Is fire a selling cost, direct manufacturing cost, indirect manufacturing cost, administrative cost, foxed cost or variable cost.
What is variable costing method?
method in which the costs to be inventoriedinclude only the variablemanufacturing costs. Fixed factory overhead is treated as a period cost-it is deducted along with the selling and administrative expenses in the period incurred. That is, Direct materials $xx Direct labor xx Variable factory overhead xx Product cost $xx Fixed factory overhead is treated as a period expense. Variable costing is used for internal management only. Its uses include: (1) inventory valuation and income determination; (2) relevant cost analysis; (3) break-even analysis and Cost-Volume-Profit (CVP) Analysis ; and (4) short-term decision-making. Variable costing is, however, not acceptable for external reporting or income tax reporting. Companies that use variable costing for internal reporting must convert to absorption costing for external reporting. Under absorption costing, the cost to be inventoried includes all manufacturing costs, both variable and fixed. Nonmanufacturing (operating) expenses, i.e., selling and administrative expenses, are treated as period expenses and thus are charged against the current revenue. Direct materials $xx Direct labor xx Variable factory overhead xx Fixed factory overhead xx Product cost $xx Two important facts are noted: 1. Effects of the two costing methods on net income: (a) When production exceeds sales, a larger net income will be reported under absorption costing. (b) When sales exceed production, a arger net income will be reported under direct costing. (c) When sales and production are equal, net income will be the same under both methods. 2. Reconciliation of the direct and absorption costing net income figures: (a) The difference in net income can be reconciled as follows: (b) the above formula works only if the fixed overhead rate per unit does not change between the periods.
Is advertising a selling expense or an administrative expense?
selling
Are utility expenses a selling or administrative expense?
an Administrative expense
Is advertising a selling or Administrative expense?
Advertising is a selling expense
