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Which of the Following Are Considered to Be Product Costs

question 77

Multiple Choice

Which of the following are considered to be product costs under variable costing?
Which of the following are considered to be product costs under variable costing?   A)  I only. B)  I and II only. C)  I and III only. D)  I,II,and III.


Definitions:

Straight-line Depreciation

A technique of distributing the expense of a physical asset uniformly over its operational lifespan.

Accelerated Depreciation

A method of depreciation in which an asset loses book value at a faster rate than the traditional straight-line method over its useful life.

Useful Life

The expected time period over which an asset is useful to the owner.

Double-declining-balance

An accelerated method of depreciation which double the rate of normal depreciation, reducing the value of assets more quickly.

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