Which of the Following Is Not a Characteristic of Absorption

question 82

Multiple Choice

Which of the following is not a characteristic of absorption costing?

• A)It is only useful in long-term manufacturing decisions.
• B)Costs are absorbed into finished goods inventory.
• C)Measures the costs of all manufacturing resources to produce inventory.
• D)All manufacturing costs are included in inventoriable costs.
• E)It is not the required inventory method for external reporting in most countries.

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Definitions:

Economic Opportunity

Circumstances that make it possible for individuals or businesses to thrive and prosper financially.

Evaluation

The process of assessing or judging the performance, effectiveness, or value of something.

Measure Progress

The process of evaluating the advancement or development of a project, student, or organization towards achieving specific goals.

Plan Objectives

Specific, measurable goals that an organization or project aims to achieve as part of its strategic or operational planning.