Which of the Following Is Not True About Separable Costs

question 120

Multiple Choice

Which of the following is not true about separable costs?

• A)Can be sunk costs.
• B)Can be fixed costs.
• C)Can be allocated costs.
• D)Always incremental costs.
• E)not always incremental costs.

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Definitions:

Complement Method

Method of computing the net price directly, using the complement of the trade discount rate.

Trade Discounts

Discounts given to buyers that generally are based on the quantity purchased.

Net Price

The real cost incurred for a product or service once all discounts, rebates, or allowances have been subtracted.

Complement Rates

In probability, the complement of an event's rate, representing the likelihood of the event not occurring.