A Basic Tenet of Variable Costing Is That Fixed Manufacturing

question 255

Multiple Choice

A basic tenet of variable costing is that fixed manufacturing overhead costs be currently expensed. What is the rationale behind this?

• A)Fixed manufacturing overhead costs are generally immaterial in amount.
• B)Fixed manufacturing overhead costs occur regardless of level of production.
• C)Allocation of fixed manufacturing costs are arbitrary at best.
• D)Fixed manufacturing costs change as production changes.

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Definitions:

Values

Core beliefs or standards that guide and motivate attitudes and actions in individuals and groups.

Beliefs

Individuals’ acceptance that certain statements are true or that something exists, often forming the basis of their actions and decisions.

Attitudes

A settled way of thinking or feeling about something, which can significantly influence individuals' behavior and perceptions.

Ethnohistory

The study of cultures and indigenous peoples' histories through a blend of historical and anthropological approaches, focusing on written records and oral traditions.