Which of the Following Statements Pertain to Both Variable Costing

question 76

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)Fixed selling and administrative expenses are treated in the same manner as variable manufacturing overhead.
• D)Both variable and absorption costing can be used for external financial reporting.
• E)Variable selling costs are treated as period costs.

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Definitions:

Performance Measurements

The process of assessing the efficiency, effectiveness, and productivity of an organization, employee, or process.

Metrics

Measurements or indicators used to gauge the performance or progress of certain activities or processes.

Perfect Order Rate

A metric that measures how many orders have been filled, delivered, and billed without error.

Order System

A structured process for managing orders within a business, which includes taking, processing, and fulfilling orders made by customers.