Full Costing

question 10

Multiple Choice

Full costing

• A)is another name for variable costing.
• B)considers fixed manufacturing overhead as an inventory cost.
• C)often provides the information needed for CVP analysis.
• D)considers fixed production cost as period cost.

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Definitions:

Compounding Periods

The frequency with which interest is added to the principal balance of an investment, affecting the total interest earned.

Future Value

The value of an investment or a sum of money projected to grow over a specified period of time, often calculated using the interest rate.

Present Value

Present value is the current worth of a future sum of money or stream of cash flows given a specified rate of return, used in time value of money calculations to compare investment options.

Amortized Loan

A loan with scheduled periodic payments that consist of both principal and interest, so the loan is paid off by the end of the term.