The Term Full Cost Refers to the Cost of Manufacturing

question 17

True/False

The term full cost refers to the cost of manufacturing and selling a unit of product and includes both fixed and variable costs.

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Definitions:

Responsibility Accounting Reports

Financial reports that measure the performance of organizational units or departments, emphasizing the accountability of managers for controllable costs.

Profit Centers

Divisions or segments within a company that are directly responsible for generating profits, evaluated based on their performance.

Net Income

The remaining profit after deducting all expenses, taxes, and costs from the total revenue.

Service Department Cost

Expenses associated with the functions that support the production or selling activities of a business, such as maintenance, cleaning, and security services.