Information That Is Not Available to the General Public About

question 172

Multiple Choice

Information that is not available to the general public about what is happening in a corporation is

• A) opportunity benefit.
• B) limited liability.
• C) economic rent.
• D) inside information.

---

Definitions:

Variable Costing

An economic recording tactic that involves only variable manufacturing costs (direct materials, direct labor, and variable manufacturing overhead) in determining product costs.

Income Statement

A financial statement that shows a company's revenues, expenses, and profits over a particular period, providing insights into its financial performance.

Absorption Costing

A product costing method in accounting that adds up all manufacturing expenses, including direct materials, direct labor, and both kinds of overheads (variable and fixed), to derive a product’s cost.

Variable Costing

An accounting method that only includes variable production costs (materials, labor, and overhead) in product costs, excluding fixed overhead.