Direct Costing Differs from Absorption Costing in That

question 75

Multiple Choice

Direct costing differs from absorption costing in that

• A)under absorption costing all fixed manufacturing overhead is expensed in the current period.
• B)under direct costing all fixed overhead is expensed in the current period.
• C)under direct costing a portion of the fixed manufacturing overhead is included in the finished goods inventory.
• D)under absorption costing an increase in finished goods inventory does not affect the amount of fixed costs expensed.

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Definitions:

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Mummy Restraint

A restraint technique used primarily in pediatric care where a child's arms and legs are wrapped securely to limit movement, often for medical procedures.

Jacket Restraint

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