Which of the Following Is an Argument Against the Use

question 83

Multiple Choice

Which of the following is an argument against the use of direct (variable) costing?

• A)Absorption costing overstates the balance sheet value of inventories.
• B)Variable factory overhead is a period cost.
• C)Fixed manufacturing overhead is difficult to allocate properly.
• D)Fixed manufacturing overhead is necessary for the production of a product.

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Definitions:

Patient-Visits

The instances or occasions when patients come to a healthcare provider or facility for treatment or consultation.

Flexible Budget

A resilient financial scheme that modifies in tune with variations in activity or volume.

Wells Serviced

The number of oil or gas wells maintained, repaired, or serviced by a company over a specific period.

Activity Variances

Differences between expected and actual costs or revenues, often associated with specific activities or operations within a business.