Under Absorption Costing, What Amount of Fixed Overhead Is Deferred

question 4

Multiple Choice

Under absorption costing, what amount of fixed overhead is deferred to a future period?

• A)$70,000
• B)$75,000
• C)$225,000
• D)$300,000

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Definitions:

E-mail

A method of exchanging digital messages over the Internet between people using electronic devices.

Telemarketing

The practice of promoting products or services through telephone calls to potential customers.

Business Expenditures

The financial outflows or expenses incurred by a business in its operational activities, including costs of goods sold, salaries, and overhead.

Direct Mail

A marketing technique that involves sending promotional materials or offers to potential customers through postal mail.