The Following Are Some of the Costs Incurred by a Cake

question 45

Multiple Choice

The following are some of the costs incurred by a cake factory. Identify them as either:
-Advertising fees

• A)Product costs
• B)Period costs

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Definitions:

Responsibility Level

The scope of authority and accountability designated to individuals or departments within an organization, often related to budgeting and costs.

Controllable Costs

Costs that can be influenced or changed by management decisions in the short term.

Master Budget

A comprehensive financial planning document that consolidates all of a company’s individual budgets, including sales, production, and expenses, for a specific period.

Flexible Budgets

Budgets that adjust or flex with changes in volume or activity, allowing for more accurate comparisons to actual results.