The level of inventory of a manufactured product has increased by 5,000 units during a period

Chapter 20(5)

Variable Costing For Management Analysis

OBJECTIVES

Obj1Describe and illustrate income reporting under variable costing and absorption

costing.

Obj 2Describe and illustrate income analysis under variable costing and absorption

costing.

Obj 3Describe and illustrate management’s use of variable costing and absorption costing

for controlling costs, pricing products, planning production, analyzing contribution

margins, and analyzing market segments.

Obj 4Use variable costing for analyzing market segments including product, territories,

and salespersons segments.

Obj 5Use variable costing for analyzing and explaining changes in contribution margin as

a result of quantity and price factors.

Obj 6Describe and illustrate the use of variable costing for service firms.

QUESTION GRID

True/False

No

.

Objectiv

e

Difficult

y

No

.

Objectiv

e

Difficult

y

No

.

Objectiv

e

Difficulty

120(5)-01Easy2320(5)-01Difficult45 20(5)-03Easy

220(5)-01Easy2420(5)-01Difficult4620(5)-04Easy

320(5)-01Easy2520(5)-01Difficult4720(5)-04 Difficult

420(5)-01Easy2620(5)-01Difficult4820(5)-04Difficult

520(5)-01Easy2720(5)-01Difficult4920(5)-04 Easy

620(5)-01Easy2820(5)-01Difficult5020(5)-04Difficult

720(5)-01Easy2920(5)-01Difficult5120(5)-04Easy

820(5)-01Easy3020(5)-01Difficult5220(5)-04Easy

920(5)-01Difficult3120(5)-01Difficult5321-05Easy

1020(5)-01 Difficult3220(5)-01Difficult5421-05Easy

1120(5)-01Difficult3320(5)-01Difficult5521-05Easy

12 20(5)-01Difficult3420(5)-01Difficult5621-05Easy

1320(5)-01Easy3520(5)-01Difficult5721-05Easy

1420(5)-01 Easy3620(5)-02Difficult5821-05Easy

1520(5)-01Easy3720(5)-02Difficult5921-05Easy

1620(5)-01Easy38 20(5)-02Difficult6021-05Easy

1720(5)-01Easy3920(5)-03Difficult6121-05Difficult

1820(5)-01Easy4020(5)-03 Difficult6221-06Moderate

1920(5)-01Easy4120(5)-03Difficult6321-06Moderate

2020(5)-01Easy4220(5)-03Easy64 21-06Moderate

2120(5)-01Easy4320(5)-03Easy6521-06Easy

2220(5)-01Easy4420(5)-03Easy

159