When You Open a File Created in an Earlier Version

question 32

Multiple Choice

When you open a file created in an earlier version of Office, "____ Mode" appears in the title bar, letting you know the file was created in an earlier, but usable version of the program.

• A) Compatibility
• B) Backward
• C) Prior
• D) Legacy

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Definitions:

Variable Costing

An accounting method that includes only variable production costs (materials, labor, and overhead) in product costs and treats fixed overhead costs as period costs.

Absorption Costing

An accounting method that incorporates all direct and indirect manufacturing costs into the cost of a product.

Net Profit

The total earnings of a company after subtracting all expenses, including taxes and operating costs, from its total revenues.

Variable Manufacturing Costs

Expenses that fluctuate with production output levels, including raw materials, direct labor, and utility costs directly involved in the manufacturing process.