Which of the Following Is Not True of the Direct

question 12

Multiple Choice

Which of the following is not true of the direct costing procedure?

• A) Variable and fixed costs are considered as part of the cost of goods manufactured.
• B) The cost of goods sold,based solely on variable costs,is subtracted from net sales to arrive at the manufacturing margin.
• C) Variable selling expenses are deducted from the manufacturing margin.
• D) Variable administrative expenses are deducted from the manufacturing margin.

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Definitions:

Negative Feedback

A type of constructive criticism that points out what was done wrong or what needs improvement, which can be essential for progress.

Decreasing Rigid Structures

The act of making systems, processes, or organizations more flexible, adaptable, and less strictly controlled.

Changing Circumstances

The variation or alteration of conditions or situations over time.

Viable

Capable of working successfully or living; feasible and able to sustain life or effectiveness.