When Writing Specifications

question 8

Multiple Choice

When writing specifications,

• A) use consistent terminology.
• B) always provide a brief introduction and summary.
• C) avoid referring to other specifications.
• D) limit the use of lists.
• E) a and c.

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Definitions:

Absorption Costing

An accounting method that includes all manufacturing costs - direct materials, direct labor, and both variable and fixed manufacturing overhead - in the cost of a product.

Manufacturing Costs

The total cost related to the production of goods, including raw materials, labor, and overhead expenses.

Variable Costing

A costing method that includes only variable production costs - direct materials, direct labor, and variable manufacturing overhead - in the cost of a product.

Variable Production Costs

Costs that fluctuate with the level of output production, such as raw materials and direct labor.