Variable Costing

question 58

Multiple Choice

Variable costing

• A) is used for external reporting purposes.
• B) is required under GAAP.
• C) treats fixed manufacturing overhead as a period cost.
• D) is also known as full costing.

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Definitions:

Lump-sum

A one-time payment executed at a specific moment, rather than several payments spread out over a period.

Installments

A method of payment where the total cost is divided into smaller, periodic payments over a set period of time.

Small Business Administration

A U.S. government agency that provides support, resources, and loans to small businesses.

Loan

Money borrowed that is expected to be paid back with interest, typically used for larger purchases or to bridge temporary financial gaps.