Which Inventory Costing Method Treats Fixed Overhead as a Product

question 93

Multiple Choice

Which inventory costing method treats fixed overhead as a product cost?

• A) Absorption costing
• B) Variable costing
• C) Throughput costing
• D) None of the above

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Definitions:

Nation-states

Political entities consisting of a sovereign state whose citizens or subjects are relatively homogeneous in factors such as language or common descent.

Autonomous

The quality of having independence or self-governance, capable of making decisions or operating independently from external control.

McDonaldization

Refers to the application of the rationalization principles of the fast-food industry to other sectors of society.

Rationalization

Is the application of the most efficient means to achieve given goals and the unintended, negative consequences of doing so.