The Costing Approach That Charges All Manufacturing Costs to the Product

question 192

Multiple Choice

The costing approach that charges all manufacturing costs to the product is referred to as

• A) variable costing.
• B) contribution margin costing.
• C) direct costing.
• D) absorption costing.

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Definitions:

Interest Rate

The percentage of a sum of money charged for its use, typically expressed as an annual percentage rate.

Income

The financial gain or money received by an individual or entity, typically through wages, investments, or business operations.

Normal Goods

Goods for which demand increases as the income of the consumer increases.

Current Consumption

The portion of income or wealth that is spent on goods and services in the present, as opposed to saving for future expenditure.