Costi Industriali e Costi Variabili: 2.Composizione dei Costi industriali e dei Variabili
1. Overview of Absorption and
Variable Costing
Direct Materials
Direct Labor
Variable Manufacturing Overhead
Fixed Manufacturing Overhead
Variable Selling and Administrative Expenses
Fixed Selling and Administrative Expenses
Variable
Costing
Absorption
Costing
Product
Costs
Period
Costs
Product
Costs
Period
Costs
2. Balance Sheet
Costs Inventories
Note: Manufacturing Cost
Flows
Income
Statement
Expenses
Variable
Manufacturing
Overhead
Material Purchases
Direct Labor
Selling and
Administrative
Fixed
Manufacturing
Overhead
Absorption costing
Variable costing
Period Costs
Selling and
Administrative
Cost of
Goods
Sold
Work in
Process
Finished
Goods
Raw Materials
3. Quick Check
Which method will produce the highest values
for work in process and finished goods
inventories?
a. Absorption costing.
b. Variable costing.
c. They produce the same values for these
inventories.
d. It depends. . .
Which method will produce the highest values
for work in process and finished goods
inventories?
a. Absorption costing.
b. Variable costing.
c. They produce the same values for these
inventories.
d. It depends. . .
4. Which method will produce the highest values
for work in process and finished goods
inventories?
a. Absorption costing.
b. Variable costing.
c. They produce the same values for these
inventories.
d. It depends. . .
Which method will produce the highest values
for work in process and finished goods
inventories?
a. Absorption costing.
b. Variable costing.
c. They produce the same values for these
inventories.
d. It depends. . .
Quick Check
5. Quick Check
Which method will produce the highest retained
earnings? (Hint: Remember the balance sheet
equation.)
a. Absorption costing
b. Variable costing
c. There would be no difference in retained
earnings under the two methods.
d. It depends ...
Which method will produce the highest retained
earnings? (Hint: Remember the balance sheet
equation.)
a. Absorption costing
b. Variable costing
c. There would be no difference in retained
earnings under the two methods.
d. It depends ...
6. Which method will produce the highest retained
earnings? (Hint: Remember the balance sheet
equation.)
a. Absorption costing
b. Variable costing
c. There would be no difference in retained
earnings under the two methods.
d. It depends ...
Which method will produce the highest retained
earnings? (Hint: Remember the balance sheet
equation.)
a. Absorption costing
b. Variable costing
c. There would be no difference in retained
earnings under the two methods.
d. It depends ...
Quick Check
Assets = Liabilities + Owners’ Equity
↑ ↑
Assets = Liabilities + Owners’ Equity
↑ ↑
8. Quick Check
Which method will produce the highest
cumulative net operating income?
a. Absorption costing
b. Variable costing
c. There would be no difference in
cumulative net operating income
under the two methods.
d. It depends ...
Which method will produce the highest
cumulative net operating income?
a. Absorption costing
b. Variable costing
c. There would be no difference in
cumulative net operating income
under the two methods.
d. It depends ...
9. Which method will produce the highest
cumulative net operating income?
a. Absorption costing
b. Variable costing
c. There would be no difference in
cumulative net operating income
under the two methods.
d. It depends ...
Which method will produce the highest
cumulative net operating income?
a. Absorption costing
b. Variable costing
c. There would be no difference in
cumulative net operating income
under the two methods.
d. It depends ...
Quick Check
10. Quick Check
If the Internal Revenue Service lets you use
either absorption or variable costing, which
method should you choose to minimize your
taxes? (Assume that once you have decided
which method to use, you cannot later change.)
a. Absorption costing.
b. Variable costing.
c. The two methods would have the same
effect on taxes.
If the Internal Revenue Service lets you use
either absorption or variable costing, which
method should you choose to minimize your
taxes? (Assume that once you have decided
which method to use, you cannot later change.)
a. Absorption costing.
b. Variable costing.
c. The two methods would have the same
effect on taxes.
11. If the Internal Revenue Service lets you use
either absorption or variable costing, which
method should you choose to minimize your
taxes? (Assume that once you have decided
which method to use, you cannot later change.)
a. Absorption costing.
b. Variable costing.
c. The two methods would have the same
effect on taxes.
If the Internal Revenue Service lets you use
either absorption or variable costing, which
method should you choose to minimize your
taxes? (Assume that once you have decided
which method to use, you cannot later change.)
a. Absorption costing.
b. Variable costing.
c. The two methods would have the same
effect on taxes.
Quick Check