For Product-Costing Purposes, Which of the Following Statements Is True

question 52

Multiple Choice

For product-costing purposes, which of the following statements is true?

• A) Under the absorption or full-costing approach it is necessary to "unitize" fixed overhead costs.
• B) The amount of standard fixed overhead costs for product-costing and for control purposes is the same.
• C) Only standard variable overhead costs are included since these costs change in response to cost drivers.
• D) Standard costing is not permissible under generally accepted accounting principles (GAAP).
• E) Total fixed overhead costs are applied to production (output) as a "lump-sum" amount.

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Definitions:

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