Which Statement Is Correct About Variable Costing

question 12

Multiple Choice

Which statement is correct about variable costing?

• A)Under this method, fixed overhead is considered a product cost because production cannot take place without these costs.
• B)Under this method, fixed overhead is considered a period cost because such costs do not vary according to production level.
• C)Under this method, variable overhead is considered a period cost because production cannot take place without these costs.
• D)Under this method, selling costs are considered a product cost because production cannot take place without these costs.

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Definitions:

RLC Parallel Circuit

An electrical circuit consisting of a resistor (R), inductor (L), and capacitor (C) connected in parallel.

Parallel Tank Circuit

A resonant circuit consisting of a capacitor and an inductor connected in parallel, used to select or filter specific frequencies.

Resonant Frequency

The frequency at which a system oscillates at its maximum amplitude.

Bandwidth

The range of frequencies within a given band, especially that used for transmitting a signal.