In Throughput Costing Which of the Following Is Untrue

question 19

Multiple Choice

In throughput costing which of the following is untrue?

• A) The throughput of a product is its selling price minus its totally variable costs
• B) Investment is also called inventory
• C) Profit is defined as throughput less operating expenses
• D) Operating expenses are classified and thought of as direct costs

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Definitions:

Investing Activities

Transactions related to the acquisition or disposal of non-current assets, including securities, property, and equipment.

Net Cash Provided

The amount of cash generated by a company, typically from operating, investing, and financing activities, minus cash outflows.

Par Value

The face value of a stock or bond as designated by the issuer, which has little relation to its market value but is important for accounting purposes.

Investing Activities

Financial activities related to the acquisition or sale of long-term assets and investments.