Question & Answer: Which of the following statements is incorrect?…..

Which of the following statements is incorrect?

Select one:

a. Absorption costing is also known as product costing.

b. Variable costing is not GAAP.

c. Only variable manufacturing costs are assigned to products under the variable costing approach.

d. When using a variable costing system, the contribution margin discloses the excess of revenues over variable costs.

Expert Answer

 

A. Absorption costing is also known as product costing.

Absorption costing is a method of calculating the cost of a product or enterprise by taking into account indirect expenses (overheads) as well as direct costs.

Still stressed from student homework?
Get quality assistance from academic writers!