Under Variable Costing, Which of the Following Costs Would Be

question 58

Multiple Choice

Under variable costing, which of the following costs would be included in finished goods inventory?

• A)salary of salesperson
• B)salary of vice president of finance
• C)wages of carpenters in a furniture factory
• D)straight-line depreciation on factory equipment

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Definitions:

Rival in Consumption

Refers to a situation where the consumption of a good by one individual prevents or diminishes its consumption by another.

Club Goods

Goods that are excludable but non-rivalrous, meaning they can be accessed by members of a specific group but one person's use does not diminish availability for others.

Public Goods

Goods that are non-excludable and non-rivalrous, meaning they can be used by everyone and one person's use does not reduce availability for others.

Public Goods

Goods that are non-excludable and non-rivalrous, meaning they are available to all members of society and one person's consumption does not reduce availability for others.