Question

Match each system to the description listed below.

F= Full costing system

V= Variable costing system

____Also known as absorption costing

____can only be used for internal reporting purposes

____treats fixed overhead as a period cost

____is used in conjunction with the traditional income statement format

____is required for external reporting purposes

____will result in the higher net income when production exceeds sales

____is used in conjunction with the contribution margin income statement

____treats fixed overhead as a product cost

____facilitates c-v-p analysis

____Allows companies to manage profits with changes in production volume

Answer 1