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Sort each trait by costing method

Exercise and reference answers

Left
Variable costing
Items
  1. Item
    Mfg margin line
    Answer
    Variable costing
  2. Item
    Contribution line
    Answer
    Variable costing
  3. Item
    Fixed FOH expensed
    Answer
    Variable costing
  4. Item
    Made for managers
    Answer
    Variable costing
  5. Item
    Gross profit line
    Answer
    Absorption costing
  6. Item
    External reporting
    Answer
    Absorption costing
  7. Item
    Fixed FOH in stock
    Answer
    Absorption costing
Right
Absorption costing
Instructions
Swipe left for variable costing, right for absorption costing. Mfg means manufacturing.

Explanation

_Source: Jonick, Principles of Managerial Accounting, section 6.1 Introduction_
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