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:

Time-Based

Relating to, measuring, or measured by the passage of time, often used in contexts like billing, scheduling, or productivity analysis.

Skill-Based

Pertaining to or focusing on the acquisition and application of practical competencies and proficiencies.

Extrinsic Rewards

Benefits provided by an employer or an external environment that motivate individuals, such as money, promotions, and praise.

Equitable

Fair or impartial treatment, ensuring equality and fairness within procedures, processes, or distribution.