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.

---

Definitions:

Nucleophilic Aromatic Substitution

A reaction where an electron-rich nucleophile displaces a leaving group in an aromatic ring, typically under conditions where the aromatic ring is activated towards nucleophilic attack.

2,4-Dinitrochlorobenzene

A chemical compound characterized by a benzene ring with two nitro groups (NO2) and one chlorine atom attached to it at the 2, 4, and 6 positions, respectively.

NaOH

Sodium hydroxide, a strong base used in both industry and laboratories.

Major Organic Products

The primary substances produced in an organic chemical reaction, often dictated by factors like reactivity and stability.