Which Type of Costing System Is the Only Acceptable Costing

question 19

Multiple Choice

Which type of costing system is the only acceptable costing system for external financial reporting?

• A)Prime costing
• B)Out-of-pocket costing
• C)Variable costing
• D)Absorption costing

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Definitions:

Experiential Purchases

Buying activities or experiences rather than physical goods, aiming for emotional satisfaction or memories.

Material Goods

Physical items produced for sale or use, often considered in the context of personal possessions or wealth.

Happiness

A state of well-being characterized by emotions ranging from contentment to intense joy.

Embarrassment

is a social emotion caused by recognizing a failure to behave according to social standards or expectations, often leading to feelings of shame or self-consciousness.