Match the Term in the Numbered Column with the Answer

question 16

Multiple Choice

Match the term in the numbered column with the answer in the lettered column.
-Design Capacity

• A)The number of inmates a prison can handle according to the judgment of experts.
• B)The number of inmates a prison can effectively accommodate based upon management considerations.
• C)The number of inmates a prison was intended to hold when it was built or modified.
• D)The size of the correctional population an institution can effectively hold.

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Definitions:

Absorption Costing

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

Variable Costing

A costing method where only variable manufacturing costs are included in the cost of goods sold, with fixed manufacturing overhead treated as a period expense.

Absorption Costing

An accounting method that includes all manufacturing costs (both fixed and variable) in the cost of a product.

Net Income

The total earnings of a company after subtracting all expenses, taxes, and costs, reflecting the actual profitability.