Inventory Under the Variable Costing Method Includes

question 74

Multiple Choice

Inventory under the variable costing method includes:

• A) Direct materials cost, direct labor cost, but no factory overhead cost.
• B) Direct materials cost, direct labor cost, and variable factory overhead cost.
• C) Prime cost but not conversion cost.
• D) Prime cost and all conversion cost.

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Definitions:

Standard Deviation

A tool to evaluate the distribution's breadth or heterogeneity of a set of data.

Wilcoxon Rank Sum Test

A non-parametric statistical test used to compare two independent samples to determine if they come from the same distribution.

Null Hypothesis

A default hypothesis that there is no significant difference or effect, often represented as H0 in statistical tests, to be tested against an alternative hypothesis.

Wilcoxon Test

A non-parametric statistical test used to compare two paired groups and determine whether their population mean ranks differ.