To Be Useful to Management Accountants for Planning and Predictive

question 22

Multiple Choice

To be useful to management accountants for planning and predictive purposes, mixed costs

• A)must be classified into their fixed and variable elements.
• B)must be classified into their direct and indirect elements.
• C)must be classified into their product and period elements.
• D)none of these.

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Definitions:

Assembly Area

A specific section in a manufacturing facility where components are put together to form the final product.

Materials Requisition

A document used in the manufacturing process to request the transfer of materials from the storeroom to the production floor.

Storeroom

A storeroom is a room or space used to store supplies, materials, or equipment, typically in a business or institutional setting, ensuring items are organized and readily available when needed.

Direct Materials

The raw materials directly used in the production of a product, which are easily traceable and integral to the finished good.