T/F On the variable costing income statement, the amounts representing the diffe
ID: 2484323 • Letter: T
Question
T/F On the variable costing income statement, the amounts representing the difference between the contribution margin and income from operations is the fixed manufacturing costs and fixed selling and administrative expenses.
T/F The absorption costing income statement does not distinguish between variable and fixed costs.
T/F Companies with large amounts of fixed costs will generally have a high operating leverage.
T/F If direct materials cost per unit increases, the break-even point will increase.
Explanation / Answer
False,On the variable costing income statement, the amounts representing the difference between the contribution margin and income from operations is the variable manufacturing costs and variable selling and administrative expenses.
True, The absorption costing income statement does not distinguish between variable and fixed costs.
True,Companies with large amounts of fixed costs will generally have a high operating leverage.
True,If direct materials cost per unit increases, the break-even point will increase.
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