Fill in the Blanks: Chapter Twenty-Three
1. With variable costing all fixed production costs are subtracted from current period revenues; whereas, with absorption costing fixed overhead may be allocated between ____________ cost of goods sold and ____________ inventory .Correct
3. The cost component that is included in inventory with absorption costing, but not variable costing, is ____________fixed factory overhead.
4. A ____________contribution income statement provides top management with an understanding of how individual responsibility centers affect total firm profitability.
5. The ____________controllable contribution margin is computed by subtracting fixed costs that are both controllable by the segment's management and directly traceable to the segment from the contribution margin.
6. A controllable contribution margin minus uncontrollable ____________fixed costs yields the segment margin.
7. ____________ Residual incomeis a concept whereby operating income is reduced for the cost of capital associated with operating assets.
8. The ____________step method allocates the cost of selected service departments partially to other service departments.
9. Reframing line item income statement information to reflect the specific nature of costs is sometimes termed ____________objective of expenditure information.