What Assumption About the Behaviour of Total Costs Occurs Within

question 33

Multiple Choice

What assumption about the behaviour of total costs occurs within the relevant range of activity?

• A)linear and upward sloping
• B)linear and downward sloping
• C)curvilinear and upward sloping
• D)horizontal

Apply concepts of purchase discounts, purchase returns, and allowances in inventory accounting.

Understand the legal and accounting aspects of FOB shipping point and FOB destination terms.

Differentiate between variable costs (e.g., freight-in costs, production supervisory salaries) that contribute to inventory valuation and those that do not (e.g., freight-out costs, selling costs).

Understand the principles of inventory costing methods including FIFO, LIFO, and weighted average.

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