For a Retail Gasoline Station,which of the Following Would Qualify

question 81

Multiple Choice

For a retail gasoline station,which of the following would qualify as capital? (i) the gas tanks and pumps
(ii) the service attendants' time
(iii) the plot of land on which the station sits

• A)(i) only
• B)(iii) only
• C)(i) and (iii)
• D)(ii) and (iii)

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Definitions:

Fixed Costs

Expenses that do not change in total regardless of the level of production or sales activity.

Absorption Costing

A product costing approach that incorporates all costs of manufacturing, including both fixed and variable, into the product's price.

Absorption Costing

An inventory pricing approach that incorporates all costs associated with manufacturing, including both variable and fixed expenses, into the product's cost.

Variable Costing

An accounting method that includes only variable production costs in the cost of goods sold and treats fixed overhead expenses as period costs.