________ Costs Are a Function of Time, Not Sales, and Are

question 38

Multiple Choice

________ costs are a function of time, not sales, and are typically contractual.

• A) Fixed
• B) Semi-variable
• C) Variable
• D) Operating

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Definitions:

Inventory-Pool Method

A technique in accounting used to group similar inventories together to simplify valuation and cost calculations.

Dollar-Value LIFO

A variation of the last in, first out (LIFO) method that measures and adjusts inventory layers in terms of dollar value rather than physical count.

Cost Index

A measure that tracks the change over time in the cost of a fixed basket of products and services, typically used for inflation adjustment or to adjust the value of a contract.

Year-End Cost

The total cost of goods, services, or assets as recorded in the financial statements at the end of a company's financial year.