Which of the Following Is(are)reason(s)for Easy Identification and Control of Variable

question 29

Multiple Choice

Which of the following is(are) reason(s) for easy identification and control of variable manufacturing costs under the variable costing method?

• A) variable and fixed costs are reported separately.
• B) variable costs can be controlled by the operating management.
• C) fixed costs,such as property insurance,are normally the responsibility of higher management not the operating management.
• D) All of the above are true.

---

Definitions:

Trust Fund

A legal arrangement where assets are held by a trustee for the benefit of another person or group.

Compounded Monthly

A method of calculating interest in which the interest earned each month is added to the principal, and the following month's interest is calculated on the new total.

Perpetuity

A financial instrument that pays a fixed amount of cash flow indefinitely.

Compounded Annually

Involves the calculation and addition of interest to the principal sum of a loan or deposit once every year.