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Which statement below describes a variable cost

05/05/2021 Client: muhammad11 Deadline: 2 Day

Determine whether each the following statements describe variable costing (VC), full absorption costing (FA), or both (B):
_____ 1. Measures gross margin as the difference between sales revenue and cost of goods sold.
_____ 2. Used primarily for internal decision making.
_____ 3. Has the highest net income when production is greater than sales.
_____ 4. Shows the same profit for a given level of sales, regardless of production.
_____ 5. Has the highest cost of goods sold when sales are greater than production?
_____ 6. Accounts for a portion of fixed manufacturing overhead as an asset.
_____ 7. Required by GAAP for external reporting.
_____ 8. May lead managers to produce more units than the market demands.
_____ 9. When production and sales are equal, results in all of the current period manufacturing overhead being deducted on the income statement.
_____ 10. Measures contribution margin as the difference between sales revenue and variable costs.

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