Which Costing Approach Assumes Fixed Overhead Costs Only Expire When

question 31

Multiple Choice

Which costing approach assumes fixed overhead costs only expire when product is sold?

• A)product costing
• B)backflush accounting
• C)absorption costing
• D)cash basis accounting

---

Definitions:

Differentiating Products

The strategy of making a product or service stand out from competitors by emphasizing its unique features or qualities.

Close Substitutes

Goods or services that can serve as replacements for each other with minimal difference in utility for the consumer.

Oligopolistic

Describing a market structure dominated by a few large producers or sellers who have significant control over prices and market share, often resulting in limited competition.

Monopolistic

Relates to a market structure where a single firm dominates the market, often leading to limited competition.