Question 1
________ are subtracted from sales to calculate gross margin.
◦ Variable and fixed manufacturing costs
◦ Fixed administrative costs
◦ Variable administrative costs
◦ Fixed selling costs
Question 2
At the end of the accounting period, Armstrong Corporation reports operating income of $30,000. Which of the following statements is true, if Armstrong's inventory levels decrease during the accounting period?
◦ Variable costing will report less operating income than absorption costing.
◦ Absorption costing will report less operating income than variable costing.
◦ Variable costing and absorption costing will report the same operating income since the cost of goods sold is the same.
◦ Variable costing and absorption costing will report the same operating income since the total costs are the same.
Neil Armstrong and a U.S. flag
Ten Leading Causes of Death in Low-Income Countries, 2008
Accounting (Making Entries)
Embryonic Period
Fetal Period
Embryonic Period