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.

---

Definitions:

Resource Extraction

The process of retrieving raw materials from the natural environment for human use.

Stream of Profits

A continuous flow of earnings generated by a business or investment over a period of time.

Mining

The extraction of valuable minerals or other geological materials from the Earth.