Which of the Following Is TRUE Concerning Throughput Costing

question 161

Multiple Choice

Which of the following is TRUE concerning throughput costing?

• A)Throughput contribution is the sum of revenues and direct costs.
• B)Throughput contribution is the difference between revenues and direct costs.
• C)Throughput contribution is the difference between revenues and variable direct labour.
• D)Throughput contribution is the difference between revenues and (variable direct labour + variable direct materials).
• E)Throughput contribution is the difference between revenues and variable direct materials costs.

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Definitions:

Cumulative Profit

The sum of all profits and losses up to a specific point in time.

Probability

The likelihood or chance of an event occurring, often quantified as a number between 0 and 1.

Poisson Distribution

A statistical distribution predicting the probability of a given number of events occurring in a fixed interval of time or space, assuming the events happen with a constant mean rate independently of the time since the last event.

Reservation

The act of reserving something in advance, such as a service or accommodation, or a specific area of land set aside or preserved for a particular purpose, often referring to lands designated for indigenous peoples.