In Addition to Developing Standard Product Costs, Organizations May Also

question 68

Multiple Choice

In addition to developing standard product costs, organizations may also develop standards for such activities as:

• A)quality control measures.
• B)machine time and performance.
• C)delivery service times.
• D)All of the answers are correct.

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Definitions:

Variable Costing

An accounting method that only considers variable costs for product costing, excluding fixed manufacturing overhead.

Absorption Costing

A costing method that includes all manufacturing costs — direct materials, direct labor, and both variable and fixed manufacturing overhead — in the cost of a product.

Variable Costing

An accounting method that includes only variable production costs (materials, labor, and overhead) in product costs, with fixed overhead expenses treated as period costs.

Carpenter Wages

Carpenter wages are the compensation paid to skilled tradespeople specializing in building, constructing, and repairing structures primarily made of wood.