MGMT 201 Exam 2 Questions and
Answers|| GRADED A+|| LATEST UPDATE
2026
material price variance -CORRECTANSWER AQ(AP-SP) (quantity of materials
purchased)
material quantity variance -CORRECTANSWER SP(AQ-SQ) (quantity of materials used
in production
labor rate variance -CORRECTANSWER AH(AR-SR)
labor efficiency variance -CORRECTANSWER SR(AH-SH)
variable overhead rate variance -CORRECTANSWER AH(AR-SR)
variable overhead efficiency variance -CORRECTANSWER SR(AH-SH)
Which of the following statements is true?
When the units produced are less than the units sold, absorption costing income will be
greater than variable costing income because absorption costing releases some fixed
,manufacturing overhead cost from ending inventory whereas variable costing expenses
each period's fixed manufacturing overhead on the income statement.
When the units produced are less than the units sold, absorption costing income will be
less than variable costing income because absorption costing releases some fixed
manufacturing overhead cost from ending inventory whereas variable costing expenses
each period's fixed manufacturing overhead on the income statement.
When the units produced are less than the units sold, absorption costing income will be
greater than variable costing income because absorption costing releases some
variable manufacturing overhead cost from ending inventory whereas variab -
CORRECTANSWER When the units produced are less than the units sold, absorption
costing income will be less than variable costing income because absorption costing
releases some fixed manufacturing overhead cost from ending inventory whereas
variable costing expenses each period's fixed manufacturing overhead on the income
statement.
Which of the following statements is true?
When the units produced are greater than the units sold, absorption costing income will
be greater than variable costing income because absorption costing releases some
fixed manufacturing overhead cost from ending inventory whereas variable costing
expenses each period's variable manufacturing overhead on the income statement.
,When the units produced are greater than the units sold, absorption costing income will
be less than variable costing income because absorption costing defers some fixed
manufacturing overhead cost in ending inventory whereas variable costing expenses
each period's fixed manufacturing overhead on the income statement.
When the units produced are greater than the units sold, absorption costing income will
be greater than variable costing income because absorption costing defers some fixed
manufacturing overhead cost in ending inventory whereas var -CORRECTANSWER
When the units produced are greater than the units sold, absorption costing income will
be greater than variable costing income because absorption costing defers some fixed
manufacturing overhead cost in ending inventory whereas variable costing expenses
each period's fixed manufacturing overhead on the income statement.
When the units produced are less than the units sold, which of the following equations
explains the difference between absorption costing and variable costing net operating
income? -CORRECTANSWER Number of units released from ending inventory × fixed
manufacturing overhead cost per unit
When the units produced exceed the units sold, which of the following equations
explains the difference between absorption costing and variable costing net operating
, income? -CORRECTANSWER Number of units deferred in ending inventory × fixed
manufacturing overhead cost per unit
Which of the following statements is true?
When the units produced are greater than the units sold, absorption costing income will
be greater than variable costing income because absorption costing defers some fixed
manufacturing overhead cost in ending inventory whereas variable costing expenses
each period's fixed manufacturing overhead on the income statement.
When the units produced are greater than the units sold, absorption costing income will
be less than variable costing income because absorption costing defers some fixed
manufacturing overhead cost in ending inventory whereas variable costing expenses
each period's fixed manufacturing overhead on the income statement.
When the units produced are greater than the units sold, absorption costing income will
be greater than variable costing income because absorption costing defers some
variable manufacturing overhead cost in ending inventory whereas variable -
CORRECTANSWER When the units produced are greater than the units sold,
absorption costing income will be greater than variable costing income because
absorption costing defers some fixed manufacturing overhead cost in ending inventory
whereas variable costing expenses each period's fixed manufacturing overhead on the
income statement.
Answers|| GRADED A+|| LATEST UPDATE
2026
material price variance -CORRECTANSWER AQ(AP-SP) (quantity of materials
purchased)
material quantity variance -CORRECTANSWER SP(AQ-SQ) (quantity of materials used
in production
labor rate variance -CORRECTANSWER AH(AR-SR)
labor efficiency variance -CORRECTANSWER SR(AH-SH)
variable overhead rate variance -CORRECTANSWER AH(AR-SR)
variable overhead efficiency variance -CORRECTANSWER SR(AH-SH)
Which of the following statements is true?
When the units produced are less than the units sold, absorption costing income will be
greater than variable costing income because absorption costing releases some fixed
,manufacturing overhead cost from ending inventory whereas variable costing expenses
each period's fixed manufacturing overhead on the income statement.
When the units produced are less than the units sold, absorption costing income will be
less than variable costing income because absorption costing releases some fixed
manufacturing overhead cost from ending inventory whereas variable costing expenses
each period's fixed manufacturing overhead on the income statement.
When the units produced are less than the units sold, absorption costing income will be
greater than variable costing income because absorption costing releases some
variable manufacturing overhead cost from ending inventory whereas variab -
CORRECTANSWER When the units produced are less than the units sold, absorption
costing income will be less than variable costing income because absorption costing
releases some fixed manufacturing overhead cost from ending inventory whereas
variable costing expenses each period's fixed manufacturing overhead on the income
statement.
Which of the following statements is true?
When the units produced are greater than the units sold, absorption costing income will
be greater than variable costing income because absorption costing releases some
fixed manufacturing overhead cost from ending inventory whereas variable costing
expenses each period's variable manufacturing overhead on the income statement.
,When the units produced are greater than the units sold, absorption costing income will
be less than variable costing income because absorption costing defers some fixed
manufacturing overhead cost in ending inventory whereas variable costing expenses
each period's fixed manufacturing overhead on the income statement.
When the units produced are greater than the units sold, absorption costing income will
be greater than variable costing income because absorption costing defers some fixed
manufacturing overhead cost in ending inventory whereas var -CORRECTANSWER
When the units produced are greater than the units sold, absorption costing income will
be greater than variable costing income because absorption costing defers some fixed
manufacturing overhead cost in ending inventory whereas variable costing expenses
each period's fixed manufacturing overhead on the income statement.
When the units produced are less than the units sold, which of the following equations
explains the difference between absorption costing and variable costing net operating
income? -CORRECTANSWER Number of units released from ending inventory × fixed
manufacturing overhead cost per unit
When the units produced exceed the units sold, which of the following equations
explains the difference between absorption costing and variable costing net operating
, income? -CORRECTANSWER Number of units deferred in ending inventory × fixed
manufacturing overhead cost per unit
Which of the following statements is true?
When the units produced are greater than the units sold, absorption costing income will
be greater than variable costing income because absorption costing defers some fixed
manufacturing overhead cost in ending inventory whereas variable costing expenses
each period's fixed manufacturing overhead on the income statement.
When the units produced are greater than the units sold, absorption costing income will
be less than variable costing income because absorption costing defers some fixed
manufacturing overhead cost in ending inventory whereas variable costing expenses
each period's fixed manufacturing overhead on the income statement.
When the units produced are greater than the units sold, absorption costing income will
be greater than variable costing income because absorption costing defers some
variable manufacturing overhead cost in ending inventory whereas variable -
CORRECTANSWER When the units produced are greater than the units sold,
absorption costing income will be greater than variable costing income because
absorption costing defers some fixed manufacturing overhead cost in ending inventory
whereas variable costing expenses each period's fixed manufacturing overhead on the
income statement.
