An Example of a Long- Term Asset Would Be

question 9

Multiple Choice

An example of a long- term asset would be:

• A)office supplies.
• B)patents.
• C)furniture.
• D)investment in LQH company.

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Definitions:

Variable Costing

A costing method that includes only variable production costs (costs that change with the level of output) in product costs, excluding fixed manufacturing overhead.

Absorption Costing

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.

Net Operating Income

A company's operating profit after subtracting operating expenses but before interest and taxes.

Absorption Costing

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