Which Inventory Costing Method Treats Direct Materials as a Product

question 154

Multiple Choice

Which inventory costing method treats direct materials as a product cost?

• A)Absorption costing
• B)Variable costing
• C)Throughput costing
• D)All of the above

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Definitions:

Keyword Method

A mnemonic technique that involves associating a new word or information with a similar-sounding keyword to facilitate recall.

Acrostics

An artistic work like a poem or a puzzle where select letters within each line spell out distinct words or messages.

Method of Loci

A mnemonic technique that involves associating information to be remembered with specific physical locations.

Self-Referent Encoding

The process of relating new information to oneself during the encoding phase, which can increase the likelihood of remembering the information.