Full Cost Information

question 59

Multiple Choice

Full cost information

• A)is required by GAAP for internal reporting purposes.
• B)requires the allocation of indirect costs.
• C)provides managers with cost information on uncontrollable costs.
• D)treats all costs as fixed costs.

---

Definitions:

Retailers

Businesses that sell goods or commodities directly to consumers.

Wholesalers

Businesses that buy goods in large quantities from manufacturers and sell them in smaller quantities to retailers or other businesses.

Drop Shipping

A retail fulfillment method where a store doesn't keep the products it sells in stock but instead transfers customer orders and shipment details to either the manufacturer or a wholesaler, who then ships the goods directly to the customer.

Furniture Maker

An individual or company that specializes in designing and manufacturing furniture.