Which of the Following Would Not Be a Factor in Evaluating

question 82

Multiple Choice

Which of the following would not be a factor in evaluating your current financial position?

• A)Income
• B)Expenses
• C)Budgeting
• D)Assets

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Definitions:

Variable Costing

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

Unit Product Cost

The total cost (both variable and fixed) to produce a single unit of product.

Contribution Format

A type of income statement that separates variable costs from fixed costs to calculate a company's contribution margin.

Absorption Costing

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