11.The factory superintendent's salary would be included as part of the cost of products manufactured under theabsorption costing concept.
a.True
b.False
12.Electricity purchased to operate factory machinery would be included as part of the cost of products manufacturedunder the absorption costing concept.
a.True
b.False
13.The absorption costing income statement does notdistinguish between variable and fixed costs.
a.True
b.False
14.In the absorption costing income statement, deduction of the cost of goods sold from sales yields gross profit.
a.True
b.False
15.In the absorption costing income statement, deduction of the cost of goods sold from sales yields contributionmargin.
a.True
b.False
16.In the absorption costing income statement, deduction of the cost of goods sold from sales yields net profit.
a.True
b.False
17.On the variable costing income statement, deduction of the variable cost of goods sold from sales yields grossprofit.
a.True
b.False
18.On the variable costing income statement, deduction of the variable cost of goods sold from sales yieldsmanufacturing margin.
a.True
b.False
19.On the variable costing income statement, all of the fixed costs are deducted from the contribution margin.
a.True
b.False
20.On the variable costing income statement, variable selling and administrative expenses are deducted frommanufacturing margin to yield contribution margin.
a.True
b.False
