The Two Main Methods for Dealing with Fixed Costs in Relation

question 15

Multiple Choice

The two main methods for dealing with fixed costs in relation to the production of inventory are:

• A) Variable costing and incremental costing.
• B) Absorption costing and direct costing.
• C) Overhead costing and ABC costing.
• D) Relevant costing and incremental costing.
• E) None of the given answers.

---

Definitions:

Opportunity Costs

The cost of the next best alternative foregone as a result of making a decision.

Scarce Resources

Essential goods and services that are limited in supply relative to demand, necessitating allocation and economical usage.

Macroeconomics Question

A question that relates to the study and analysis of the economy as a whole, including issues like inflation, unemployment, and economic growth.

Constitutional Amendment

A formal change or addition proposed or made to a constitution, modifying its existing provisions or adding new ones.