Identify the Treatment of Each of the Following Costs Under

question 136

Essay

Identify the treatment of each of the following costs under variable costing and absorption costing:
$\begin{array}{c}\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\text { Variable Costing }\quad \text { Absorption Costing } \\\begin{array}{|l|c|c|c|c|}\hline &\begin{array}{c}\text { Product } \\\text { Cost }\end{array} & \begin{array}{c}\text { Period } \\\text { Cost }\end{array} & \begin{array}{c}\text { Product } \\\text { Cost }\end{array} & \begin{array}{c}\text { Period } \\\text { Cost }\end{array} \\\hline \text { 1. Direct materials } && \\\hline \text { 2. Direct labor } && \\\hline \text { 3. Variable manufacturing overhead } & & \\\hline \text { 4. Fixed manufacturing overhead } & & & \\\hline \text { 5. Variable selling } & & \\\hline \text { 6. Fixed selling } & & \\\hline \text { 7. Variable administrative } & & \\\hline \text { 8. Fixed administrative } & & \\\hline\end{array}\end{array}$

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Definitions:

Single Buyer

A market situation where there is only one buyer, or consumer, for a particular product or service, often leading to monopsony power.

Single Seller

A market structure where there is only one provider of a particular product or service, leading to monopoly.

Federal Judicial Power

The authority granted to federal courts and judges to rule on legal disputes, including interpreting the Constitution and laws of the United States.

Article III

Pertains to the section of the U.S. Constitution that establishes the judicial branch of the federal government.