A Disadvantage of Absorption Costing Is

question 39

Multiple Choice

A disadvantage of absorption costing is

• A)that it is not a useful format for decision making.
• B)that it assigns only manufacturing costs to the product.
• C)all of these
• D)none of these

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Definitions:

Taxes

Compulsory financial charges or other levies imposed on an individual or a company by a governmental organization in order to fund various public expenditures.

Discretionary Income

Discretionary income is the amount of an individual's income that is left for spending, investing, or saving after taxes and personal necessities have been paid.

Disposable Income

The amount of money an individual or household has available for spending and saving after taxes have been deducted.

Net Income

The total earnings or profit of a business after subtracting all expenses, taxes, and costs.