Variable Costing of Inventory and Absorption Costing of Inventory Is

question 16

Multiple Choice

Variable costing of inventory and absorption costing of inventory is relevant for which of the following types of businesses:

• A)Manufacturing firms.
• B)Not-for-profit companies.
• C)Governmental units.
• D)Service firms.
• E)All of thesE.
• This question is vague as originally worded."Choice" to use variable costing or absorption costing for what purpose - financial statements,decision making? I think I know what you are getting at,and changed it to read as abovE.

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Definitions:

Economic Profits

The excess amount after subtracting total expenses from total revenues, considering both explicit and implicit costs.

Demand Curves

A graph representing the relationship between the quantity of a good consumers are willing and able to purchase and its price.

Industry

A sector of the economy that produces goods, services, or related products, categorized by their business activities.