_____ Is Another Term for Variable Costing

question 72

Multiple Choice

_____ is another term for variable costing.

• A)Full costing
• B)Direct costing
• C)Traditional costing
• D)Absorption costing

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Definitions:

Unit-Level Activity

Activities that vary directly with the volume of production units, such as processing, assembly, or packaging activities in manufacturing.

Activity-Based Costing

A costing methodology that assigns manufacturing costs to products based on the activities that go into producing them.

Manufacturing Overhead Costs

Indirect costs associated with manufacturing that cannot be directly traced to specific products, such as factory rent, utilities, and maintenance.

Overapplied Overhead

A credit balance in the Manufacturing Overhead account that occurs when the amount of overhead cost applied to Work in Process exceeds the amount of overhead cost actually incurred during a period.