Which of the Following Statements Pertain to Both Variable Costing

question 71

Multiple Choice

Which of the following statements pertain to both variable costing and absorption costing?

• A) The income statement discloses the amount of gross margin generated during the reporting period.
• B) Fixed selling and administrative expenses are treated in the same manner as fixed manufacturing overhead.
• C) Both variable and absorption costing can be used for external financial reporting.
• D) Variable selling costs are written-off as expenses of the accounting period.
• E) Fixed manufacturing overhead is attached to each unit produced.

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Definitions:

Poverty Rate

The percentage of the population with incomes below the poverty threshold.

Poverty Threshold

The minimum level of income deemed necessary to achieve an adequate standard of living in a given country.

Social Insurance

Government-provided insurance programs designed to protect individuals from economic risks and insecurities, such as unemployment, old age, or disability.

Food Stamps

A government assistance program that provides low-income families with funds to purchase groceries, aiming to reduce hunger and improve nutrition.