Costs Determined by Management as Part of the Periodic Planning

question 80

Multiple Choice

Costs determined by management as part of the periodic planning process in order to meet the organization's goals are

• A) discretionary fixed costs.
• B) engineered costs.
• C) mixed costs.
• D) step costs.

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Definitions:

Direct Materials Purchases

The total cost of raw materials bought that are directly incorporated into a finished product.

Ending Direct Materials

Ending Direct Materials refers to the value of raw materials that are still available for use in production at the end of an accounting period.

Required Production

Required production is the quantity of goods a company needs to produce in a given period to meet customer demand and maintain inventory levels.

Direct Labor

Labor costs directly associated with the manufacture of products or provision of services, such as wages for assembly line workers.