Carcer, Alyssa Nicole D.

BAMA302

ACCN13B

Midterm Exam

1. Through a comic strip compare and contrast the full costing and variable costing

the content should include the following: (40 points)

A. Definition

B.  Explanation

C. Application
2. Create a memes that distinguish period from product cost (15 points)
3. Look for any Income statement of a company on the internet, most, if not all of them
adhere with full costing, now translate those into variable costing. (25 points)

Ningning Company
Variable Costing Income Statement
Internal Use Only
For the Month Ending August 31, 20X7

Sales Php 675, 000

Less: Variable product costs 270, 000

Variable mfg. margin Php 405, 000

Less: Variable SG&A 101, 250

Contribution Margin 303, 750

Less: Fixed Expenses

Fixed Factory Cost Php 150, 000

Fixed SG&A 100, 000 250, 000

Income Php 53, 750

4. Enumerate Five types of Costs which are considered relevant and explain why they
are considered relevant (15 points)

* Out of Pockets Costs - they necessitate future economic outlays and are crucial to
future decisions.

* Opportunity Cost - a potential benefit that could be lost if one of the alternatives is
chosen. Many such expenditures should be considered at times.

* Relevant Benefits - by taking a different path, you can generate more or incremental
money.

* Avoidable costs - – Also known as escapable costs, these are typically utilized in
conjunction with decisions to discontinue a product or market segment These are
expenses that the corporation would not have to pay. If the segment was removed These
are important considerations for deciding whether or not to eliminate something. This is
significant in terms of managerial decisions.

5. When is my birthday? (5 points)

December 19, 1990