Discontinuous Variation Occurs When

question 21

Multiple Choice

Discontinuous variation occurs when

• A) no real variation is apparent between forms.
• B) variants come in distinct forms.
• C) variants come in a smooth distribution from one extreme to another.
• D) only one extreme variant exists.

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Definitions:

Direct Method

An accounting method used to allocate service department costs directly to producing departments without considering services rendered between service departments.

Cost of Goods Sold

The immediate expenses directly related to the manufacture of products sold by a business, encompassing costs for materials, labor, and overhead.

Comparative Balance Sheet

A financial statement that presents the financial position of a company at two or more different points in time, side-by-side, to facilitate comparison.

Direct Method

An accounting approach where costs are directly traced to objects, such as products or services, without using cost drivers or allocation bases.