Which of the Following Statements Is True Regarding Absorption Costing

question 146

Multiple Choice

Which of the following statements is true regarding absorption costing?

• A) It is a not the traditional costing approach.
• B) It is not permitted to be used for financial reporting.
• C) It is not permitted to be used for tax reporting.
• D) It assigns all manufacturing costs to products.
• E) It requires only variable costs to be treated as product costs.

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Definitions:

Consequentialism

A general approach to ethical dilemmas which requires that we consider the consequences our actions will have on relevant people.

Rigid Set

In mathematics, a set whose members adhere to strict criteria or definitions, often used in contrast to more flexible or loosely defined collections.

Consequentialism

An ethical theory that judges whether an act is right or wrong based on its consequences.

Utilitarianism

The ethical principle that urges individuals to act in a way that creates the most happiness for the largest number of people.