Which Accounting Policy for Manufacturing Fixed Costs Is Likely to Favour

question 58

Multiple Choice

Which accounting policy for manufacturing fixed costs is likely to favour managers whose firms are subject to political scrutiny?

• A) Direct costing;
• B) Absorption costing;
• C) LIFO assuming prices are falling;
• D) FIFO assuming prices are rising;
• E) E: None of the given answers.

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Definitions:

Centralization

The degree to which decision-making authority is concentrated at higher levels within an organization.

Environmental Factors

External elements, conditions, or influences that impact an individual's behaviors, decisions, and wellbeing.

Technological Interdependence

A situation where companies or organizations depend on each other's technological capabilities and innovations to achieve their business goals.

Functional

Designed to be practical and useful, often referring to something that has a specific purpose or role in a larger system or structure.