The Choice of Inventory Costing Method Does Not Have an Effect

question 25

True/False

The choice of inventory costing method does not have an effect on net income.

Identify the structural components of various professional messages, such as requests, goodwill messages, condolences, and press releases.

Recognize the importance of prioritizing information in professional communication.

Know the guidelines for writing condolences and appreciation messages.

Understand the use and advantages of social media in professional releases.

---

Definitions:

Variable Cost Method

A cost-plus method of pricing setting in which only the variable costs are included in the cost amount to which the markup is added.

Fixed Manufacturing Costs

Expenses that do not change with the level of production, such as rent, salaries of permanent employees, and depreciation of factory equipment.

Markup

The extra charge added to the purchasing cost of items to encompass both overhead expenses and profit, setting the sale price.

Contribution Margin

The excess of sales over variable costs; the excess of manufacturing margin over variable selling and administrative expenses.