In an income statement prepared as an internal report, total fixed costs normally would be shown separately under:
$\begin{array}{lrr}
&\text { Absorption costing } & \text { Variable costing } &\
\end{array}$
A.$\begin{array}{lrr}
&&&& \text { No} &&&&&&& \text { No } &\
\end{array}$
B.$\begin{array}{lrr}
&&&& \text { No} &&&&&&& \text { Yes} &\
\end{array}$
C.$\begin{array}{lrr}
&&&&\text {Yes } &&&&&&& \text {Yes } &\
\end{array}$
D.$\begin{array}{lrr}
&&&& \text { Yes } &&&&&&&\text {No } &\
\end{array}$
A)Option A
B)Option B
C)Option C
D)Option D

Question

In an income statement prepared as an internal report, total fixed costs normally would be shown separately under:
$\begin{array}{lrr}
  &\text { Absorption costing } & \text {  Variable costing } &\
\end{array}$
A.$\begin{array}{lrr}
 &&&& \text {  No} &&&&&&& \text { No } &\
\end{array}$
B.$\begin{array}{lrr}
 &&&& \text {  No} &&&&&&& \text {  Yes} &\
\end{array}$
C.$\begin{array}{lrr}
  &&&&\text {Yes  } &&&&&&& \text {Yes  } &\
\end{array}$
D.$\begin{array}{lrr}
&&&&  \text { Yes } &&&&&&&\text {No  } &\
\end{array}$
A)Option A
B)Option B
C)Option C
D)Option D

Quizplus · Accepted Answer

Under variable costing, total fixed costs are shown separately because this method only includes variable production costs in the cost of goods sold, with fixed manufacturing overhead treated as a period expense. Absorption costing, however, includes both variable and fixed production costs in the cost of goods sold, not separating fixed costs in the income statement.

In an Income Statement Prepared as an Internal Report, Total Absorption costing Variable costing \begin{array}{lrr} &\text { Absorption costing } & \text { Variable costing } &\\\end{array}​ Absorption costing ​ Variable costing ​​

In an Income Statement Prepared as an Internal Report, Total $\begin{array}{lrr} &\text { Absorption costing } & \text { Variable costing } &\\\end{array}$