Which of the Following Statements Pertain to Both Variable Costing

question 17

Multiple Choice

Which of the following statements pertain to both variable costing and absorption costing?

• A)The income statement discloses the amount of gross margin generated during the reporting period.
• B)Fixed selling and administrative expenses are treated in the same manner as fixed manufacturing overhead.
• C)Both variable and absorption costing can be used for external financial reporting.
• D)Variable selling costs are written-off as expenses of the accounting perioD.
• E)Fixed manufacturing overhead is attached to each unit produced.

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Definitions:

Stakeholders

Individuals or groups that have an interest in the success and strategies of an organization, including employees, customers, investors, and suppliers.

Freezing Stage

A phase in change management where old behaviors are solidified to prepare for new strategies, often part of Lewin's Change Theory.

Trial-and-Error

A problem-solving method involving repeated attempts with the aim of finding a solution through successive failures or mistakes.

Intended Change

A change that is planned and purposefully implemented within an organization to achieve specific objectives.