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:

Neo-Marxist Philosophy

An approach that extends Marxist theory to include cultural and ideological factors influencing social structure and class relations.

International Division

The differentiation of tasks, production, or labor on a global scale, often leading to economic disparities between nations.

Differential Profits

Differential profits refer to the variation in profits earned by businesses due to differences in efficiency, market conditions, or innovation, highlighting disparities in economic performance.

Modernization Theory

A theory suggesting that societies progress linearly from traditional to modern states of development, emphasizing the role of technology, economic growth, and socio-political changes.