Which Statement Is Correct About Variable Costing

question 12

Multiple Choice

Which statement is correct about variable costing?

• A)Under this method, fixed overhead is considered a product cost because production cannot take place without these costs.
• B)Under this method, fixed overhead is considered a period cost because such costs do not vary according to production level.
• C)Under this method, variable overhead is considered a period cost because production cannot take place without these costs.
• D)Under this method, selling costs are considered a product cost because production cannot take place without these costs.

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Definitions:

Environmental Changes

Alterations in the external conditions that can impact an organization's operations and strategies.

Product Delivery

The process of moving goods from the production location to the place where they will be used or consumed.

Informal Learning

An unstructured and non-institutionalized form of learning that occurs in various contexts outside of a formal educational environment, often resulting from daily activities related to work, family, or leisure.

Departmentalisation

Departmentalisation is the process of grouping together people and jobs into work units.