Under Throughput Costing,the Cost of a Unit Typically Includes

question 38

Multiple Choice

Under throughput costing,the cost of a unit typically includes:

• A)selling costs.
• B)fixed manufacturing overhead.
• C)the direct costs incurred whenever a unit is manufactured.
• D)administrative costs.
• E)all of thesE.

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Definitions:

Partial Equity Method

An accounting technique used when an investing company does not have significant influence over the investee but still wants to record its investment's profit and loss proportionately.

Equity Method

An accounting technique used to record investments in associate companies where the investor has significant influence, typically reflected by owning 20%-50% of voting stock.

Acquisition Method

A set of procedures used in accounting to consolidate the financial statements of a parent company and its subsidiaries.

Consolidated Revenues

The total earnings generated by a company and its subsidiaries, reported together as a single figure.