The One Primary Difference Between Variable and Absorption Costing Is

question 21

Multiple Choice

The one primary difference between variable and absorption costing is that under

• A) variable costing, companies charge the fixed manufacturing overhead as an expense in the current period.
• B) absorption costing, companies charge the fixed manufacturing overhead as an expense in the current period.
• C) variable costing, companies charge the variable manufacturing overhead as an expense in the current period.
• D) absorption costing, companies charge the variable manufacturing overhead as an expense in the current period.

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Definitions:

Density-Dependent

Referring to factors whose effects on a population vary depending on the population density.

Population Control

Strategies or policies aimed at regulating the growth rate of a population to ensure sustainability and prevent overuse of resources.

Predation

The biological interaction where one organism, the predator, feeds on another organism, its prey.

Brazilian Rain Forest

The Amazon Rainforest in Brazil, which is the largest tropical rainforest in the world, known for its biodiversity.