How Do We Determine the Conditions That Existed in the Very

question 45

Multiple Choice

How do we determine the conditions that existed in the very early universe?

• A) We work backward from current conditions to calculate what temperatures and densities must have been when the observable universe was much smaller in size.
• B) We look all the way to the cosmological horizon, where we can see the actual conditions that prevailed all the way back to the first instant of the Big Bang.
• C) The conditions in the very early universe must have been much like those found in stars today, so we learn about them by studying stars.
• D) We can only guess at the conditions, since we have no way to calculate or observe what they were.

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Definitions:

Absorption Costing

An accounting method that includes all manufacturing costs, both direct and indirect, in the cost of a product.

Throughput Costing

An accounting method emphasizing the costs directly associated with producing goods, excluding indirect costs like manufacturing overhead.

Variable Costing

A costing method in which variable manufacturing costs are treated as product costs while fixed manufacturing overheads are treated as period costs.

Predetermined Overhead Rate

A calculated rate used in cost accounting to allocate overhead costs to products or services, based on estimated overhead costs and activity levels.