Direct Materials Costs Are Deducted from Revenues When Units Are

question 62

Multiple Choice

Direct materials costs are deducted from revenues when units are sold under which of the following costing method(s) ? I Absorption
II Throughput
III Variable

• A) I and II only
• B) II and III only
• C) I and III only
• D) I, II, and III

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Definitions:

Graph

A diagram showing the relation between variable quantities, typically of two variables measured along a pair of lines at right angles.

Reactants

Materials that exist before a chemical reaction starts and are used up to create end products during the reaction.

Hydrogen Ion Acceptor

A hydrogen ion acceptor, often a base in chemical terms, is a compound that is capable of accepting a hydrogen ion (H+) from another compound, thus participating in neutralization or buffer reactions.

FAD

Flavin adenine dinucleotide, a redox-active coenzyme associated with various proteins and involved in several important enzymatic reactions in metabolism.