Advantages of Throughput Costing Include All of the Following EXCEPT

question 41

Multiple Choice

Advantages of throughput costing include all of the following EXCEPT

• A)throughput costing reduces management's tendency to build inventory levels over which to spread fixed manufacturing costs of production.
• B)throughput costing motivates managers to reduce operating costs such as direct labour and variable overhead, which are treated as period costs rather than product costs.
• C)throughput costing is simpler than normal costing or absorption costing since all manufacturing overhead is expensed as a period cost immediately.
• D)throughput costing motivates managers to reduce operating costs such as direct materials and variable overhead, which are treated as period costs rather than product costs.

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Definitions:

Conditional Estate

A type of property ownership that is subject to certain conditions or events, which, if not met or occur, can alter or terminate the estate.

Modern Wing

In architecture, it typically refers to a contemporary extension or section added to an existing building or structure, often characterized by modern design elements.

Action For Waste

A legal cause of action by a property owner or lessor against a lessee for substantial damage caused to the property, diminishing its value.

Life Estate

A property interest that lasts for the lifetime of a specific individual, after which it transfers to another designated party.