Which of the Following Accurately Describes Variable Costing

question 111

Multiple Choice

Which of the following accurately describes variable costing?

• A) Only variable manufacturing costs are assigned to products.
• B) Only fixed manufacturing costs are assigned to products.
• C) Both variable and fixed manufacturing costs are assigned to products.
• D) Both manufacturing and non-manufacturing costs are assigned to products.

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Definitions:

Perfectly Mobile

Refers to resources or labor that can move without restriction or barriers between areas to find employment or investment opportunities.

Output Per Worker

The amount of goods or services produced divided by the number of employees, a measure of labor productivity.

Physical Capital

The tangible assets such as buildings, machinery, and equipment used in the production of goods and services.

Human Capital

The collective skills, knowledge, and experience possessed by an individual or population, viewed in terms of their value to an organization or society.