introduction chapters
chapter 23
Reporting Techniques in
Support of Managerial Decision Making
goals discussion goals achievement fill in the blanks multiple choice problems check list and key terms
1. With variable costing all fixed production costs are subtracted from current period revenues; whereas, with absorption costing fixed overhead may be allocated between and .
2. The contribution margin under variable costing corresponds to sales minus , while absorption costing positions as sales minus cost of goods sold.
3. The cost component that is included in inventory with absorption costing, but not variable costing, is .
4. A income statement provides top management with an understanding of how individual responsibility centers affect total firm profitability.
5. The 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 costs yields the segment margin.
7. is concept whereby operating income is reduced for the cost of capital associated with operating assets..
8. The 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 information.