What Does Full Cost Represent

question 4

Multiple Choice

What does full cost represent?

• A)only semi-variable costs.
• B)variable costs.
• C)both fixed and variable costs.
• D)fixed costs.

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Definitions:

Equivalent Unit

A measurement used in cost accounting to represent the amount of work done on partially finished goods, expressed in terms of fully completed units.

Materials

Raw substances or components that are used in the production or manufacturing process to create goods or products.

Cost

Cost refers to the monetary value spent to acquire goods or services, including amounts paid for materials, labor, and other inputs required to produce or deliver the item.

Conversion Costs

Expenses incurred when converting raw materials into finished products, including labor and manufacturing overhead.