Fixed Selling Expenses Are Period Costs

question 84

Multiple Choice

Fixed selling expenses are period costs

• A) under both absorption and variable costing.
• B) under neither absorption nor variable costing.
• C) under absorption costing, but not under variable costing.
• D) under variable costing, but not under absorption costing.

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Definitions:

Personal Defences

Legal arguments used by individuals in court to justify their actions or to deny liability.

Holder In Due Course

A person who acquires a negotiable instrument before its due date that is complete and regular on its face, and who gave value for the instrument, without any knowledge of default or defect in the title of prior holders.

Negotiable Instrument

A written document guaranteeing the payment of a specific amount of money, either on demand or at a set time, with the name of the payer and payee.

Promissory Note

A financial instrument containing a written promise by one party to pay another party a definite sum of money either on demand or at a specified future date.