Which of the Following Involves the Inclusion of Both Variable

question 81

Multiple Choice

Which of the following involves the inclusion of both variable and fixed costs in the determination of unit costs for ending inventories and cost of goods sold?

• A)Just in time production systems
• B)Manufacturing resource planning
• C)Earning management
• D)Absorption costing

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Definitions:

GAAP

Generally Accepted Accounting Principles, a standardized set of accounting principles in the United States governing financial reporting and accounting.

Depreciation Requirements

The set of rules or guidelines dictating how an asset's cost should be allocated over its useful life.

Retained Earnings

Accumulated net income not distributed to shareholders as dividends but retained by the company for reinvestment in its operations or to pay debt.