Which of the Following Is TRUE Concerning Throughput Costing

question 13

Multiple Choice

Which of the following is TRUE concerning throughput costing?

• A)It is also called super-absorption costing.
• B)It treats all costs except those related to direct labour as period costs.
• C)It provides more incentive to build-up inventories than does absorption costing.
• D)It provides more incentive to build-up inventories than does variable costing.
• E)Other things being equal, is more conservative than absorption costing.

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Definitions:

Esophagus

A muscular tube that conveys food from the throat to the stomach.

Epiglottis

Plate of elastic cartilage covered with mucous membrane; serves as a valve over the glottis of the larynx during swallowing.

Larynx

The voice box; a structure in the throat containing the vocal cords, responsible for producing sound and protecting the airway during swallowing.

Cardiac Sphincter

A muscular valve located between the esophagus and the stomach, preventing acid reflux from the stomach back into the esophagus.