Match Each of the Following Descriptions with the Appropriate Costing

question 74

Short Answer

Match each of the following descriptions with the appropriate costing concept (a-c).
-Includes gross profit on the income statement
A)Absorption costing only
B)Variable costing only
C)Both absorption and variable costing

• A)Absorption costing only
• B)Variable costing only
• C)Both absorption and variable costing

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Definitions:

TILA (Truth in Lending Act)

A United States federal law designed to protect consumers in their dealings with lenders and creditors by requiring clear disclosure of key terms of the lending arrangement and all costs.

Promissory Note

A written, legally binding agreement in which one party promises to pay another a specified sum of money at a specified time.

Security Interest

A legal claim or right on collateral granted to a lender, ensuring the collection of a debt or obligation.

Real Property

Refers to land and anything permanently attached to it, such as buildings, and is distinct from personal property.