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Some Theorists Suggest That These Two Concepts Are Not Clearly

question 290

Multiple Choice

Some theorists suggest that these two concepts are not clearly differentiated. It might be best to consider one as a stimulus and the other as a response. These two concepts are ________.


Definitions:

Variable Costing

A costing approach in which only variable manufacturing costs are product costs, and fixed manufacturing costs are period costs (expenses).

Absorption Costing

A costing approach in which all manufacturing costs are charged to the product.

Variable

An element, feature, or factor that is subject to change, often used in financial analysis, statistics, and scientific research.

Absorption

In accounting, it refers to the process of incorporating all costs of production into the value of a product, including both direct and indirect expenses.

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