Critical Thinking Questions Case 10-1

question 67

Multiple Choice

Critical Thinking Questions Case 10-1
Robin is interested in sewing clothes for children. Since she received a lot of support and appreciation for her work, she converted her hobby into a small business.
Since the business has just started, she plans to start an online journal to share new information and to keep her customers engaged. Which of the following should Robin use for this purpose?

• A)Instagram
• B)LinkedIn
• C)Facebook
• D)Blog

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Definitions:

Variable Costing

An accounting strategy that only accounts for variable production expenditures (direct materials, direct labor, and variable manufacturing overhead) in product pricing.

Unit Product Cost

The total cost (both direct and indirect) to produce a single unit of product, often used to set selling prices and assess profitability.

Absorption Costing

A method of costing that includes all manufacturing costs - direct materials, direct labor, and both variable and fixed overhead - as part of the cost of a product.

Variable Costing

A costing method that includes only variable production costs (direct material, direct labor, and variable manufacturing overhead) in product costs.