An Employee Assigned to Counting Computer Monitors in Boxes Should

question 97

Multiple Choice

An employee assigned to counting computer monitors in boxes should

• A)estimate the number if there is a large quantity to be counted.
• B)read each box and rely on the box description for the contents.
• C)determine that the box contains a monitor.
• D)rely on the warehouse records of the number of computer monitors.

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Definitions:

Absorption Costing

An accounting method that includes all manufacturing costs - direct materials, labor, and both variable and fixed overhead - in the cost of a product.

Net Operating Income

An entity’s income after all operating expenses have been deducted from total revenue, excluding taxes and interest charges.

Variable Costing

A costing method in which fixed manufacturing overhead is not assigned to the product, but rather treated as an expense of the period.

Absorption Costing

is an accounting method that includes all manufacturing costs—direct materials, direct labor, and both variable and fixed manufacturing overhead—in the cost of a product.