Under Full Absorption Costing, Which of the Following Are Included

question 121

Multiple Choice

Under full absorption costing, which of the following are included in product costs?

• A) Only direct materials and direct labor.
• B) Only variable manufacturing costs.
• C) Only conversion costs.
• D) All fixed and variable manufacturing costs.

Apply overheads to inventory using correct rates in a standard costing system.

Understand the concept of volume variance and its relevance to costing systems and cost control.

Recognize the importance and application of flexible budgets for overhead cost control.

Distinguish between the planning and control of overhead costs in different types of organizations.

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Definitions:

Commodity 1

A term typically used to denote the first item or primary focus in a series of commodities being analyzed or discussed.

Budget Line

A visual depiction of all the different combinations of two products that can be bought given certain prices and a specific income level.

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A genre of music that emerged in the 1970s, characterized by fast, hard-edged music and attitudes of rebellion and anti-establishment.

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