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.

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Definitions:

Variable N

A symbol or placeholder for an unknown or changing quantity in mathematics and science.

Certificate Of Deposit (CD)

A certificate that states there is a specific sum of money on deposit and guarantees the payment of a fixed interest rate after a certain period of time, usually seven days to ten years; deposits and withdrawals cannot be made with a CD.

Money Market Account

An account that pays a higher interest rate than other types of accounts, but usually requires a higher initial deposit and a higher minimum balance often with a limit on the number of transactions per month.

Statement Savings Account

A statement savings account is a type of savings account that provides the account holder with periodic statements, detailing transactions and balances.