Which of the Following Statements Pertain to Variable Costing

question 45

Multiple Choice

Which of the following statements pertain to variable costing?

• A)This method must be used for external financial reporting.
• B)Fixed manufacturing overhead is attached to each unit produced.
• C)The income statement discloses a company's contribution margin.
• D)Variable manufacturing overhead becomes part of a unit's cost.
• E)Statements "C" and "D" both pertain to variable costing.

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Definitions:

1930s

The decade spanning from 1930 to 1939, marked by significant events such as the Great Depression and the lead-up to World War II.

The South

Commonly refers to the southern part of the United States, historically known for its agrarian economy and was the center of the American slave trade.

Economic Growth

An increase in the production of goods and services in an economy over a period of time, evidenced by an increase in the country's gross domestic product (GDP).