Costs That Do Not Vary with Production Levels or Sales

question 120

Multiple Choice

Costs that do not vary with production levels or sales revenue are known as ________ costs.

• A) overhead
• B) variable
• C) average
• D) opportunity
• E) total

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Definitions:

Adjusting Entry

A journal entry made in the accounting records at the end of an accounting period to allocate income and expenditure to the appropriate period.

Closing Entry

A journal entry made at the end of an accounting period to transfer the balances of temporary accounts to a permanent account.

Adjusting Entry

An accounting record posted at the closing of a financial period to assign revenues and expenses to the time they were incurred.

Closing Entry

An accounting action that transfers all temporary account balances to permanent accounts at the end of an accounting period, preparing the books for the next period.