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Which of the following results in fewer transactions in just-in-time accounting?

ID: 2472037 • Letter: W

Question

Which of the following results in fewer transactions in just-in-time accounting?

On the variable costing income statement, the figure representing the difference between the contribution margin and income from operations is the fixed manufacturing costs and fixed selling and administrative expenses.

Sales mix is generally defined as the relative distribution of sales among the various products sold.

a. The distinction between direct and indirect costs is eliminated. b. All manufacturing costs are combined in one account called Raw and In Process Inventory. c. There is less movement of inventory between departments. d. All of these choices are correct.

On the variable costing income statement, the figure representing the difference between the contribution margin and income from operations is the fixed manufacturing costs and fixed selling and administrative expenses.

a. True b. False

Sales mix is generally defined as the relative distribution of sales among the various products sold.

a. True b. False

Explanation / Answer

Answer for 1)

My answer is (c). In just in time accounting we receive inventory only when needed to prevent carrying costs and wastages.

Answer for 2)

My answer is true.

In variable costing income statement, varible manufacturing and variable selling and distributed expenses are deducted from revenue to obtain contribution margin and from it fixed manufacturing and fixed selling and distributed costs are deducted to obtain income from operations.

Answer for 3)

My answer is true.A sales mix is combined sales of various products sold to get distributed to attain volume of sale of each product.

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