Direct Material and Direct Labor Costs Are Assigned to Inventory

question 21

Multiple Choice

Direct material and direct labor costs are assigned to inventory when using I. Absorption costing
II. Throughput costing
III. Variable costing

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

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Definitions:

Law of Parsimony

A principle that suggests when faced with competing hypotheses, the one that makes the fewest assumptions should be selected.

Fewest Constructs

Refers to employing the minimum number of conceptual or theoretical tools necessary to effectively understand and interpret a phenomenon or data set.

Dependent Variable

In experimental and observational studies, it is the variable being tested and measured, which is hypothesized to be affected by one or more independent variables.

Self-Esteem

An individual’s subjective evaluation of their own worth or value.