What Costs Are Treated as Product Costs Under Variable (Direct)costing

question 169

Multiple Choice

What costs are treated as product costs under variable (direct) costing?

• A)only direct costs
• B)only variable production costs
• C)all variable costs
• D)all variable and fixed manufacturing costs

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Definitions:

Greatest Good

A principle often associated with utilitarianism, focusing on actions that produce the highest level of happiness or benefit for the greatest number of people.

Rules

Guidelines or principles governing conduct, operation, or procedure within a specific area or entity, designed to provide order and predictability.

Stakeholder Model

A theory of organizational management and business ethics that addresses the morality and values in managing an organization by considering all stakeholders involved.

Social Contract Theory

A philosophical theory which posits that individuals consent, either explicitly or tacitly, to surrender some of their freedoms and submit to an authority in exchange for protection of their remaining rights.