Which of the Following Best Describes Costs Assigned to the Product

question 26

Multiple Choice

Which of the following best describes costs assigned to the product under the absorption costing method?
Direct labor (DL)
Direct materials (DM)
Variable selling and administrative
Variable manufacturing overhead
Fixed selling and administrative
Fixed manufacturing overhead

• A) DL, DM, variable selling and administrative costs, and variable manufacturing overhead.
• B) DL, DM, and variable manufacturing overhead.
• C) DL, DM, variable manufacturing overhead, and fixed manufacturing overhead.
• D) DL and DM.
• E) DL, DM, fixed selling and administrative, and fixed manufacturing overhead.

Understand the direct and indirect methods for calculating cash flows from operating activities.

Analyze changes in balance sheet accounts to determine their impact on cash flows.

Distinguish between cash flows from operating activities and other adjustments.

Recognize the effect of accounts receivable, inventory, and accounts payable changes on cash flow.

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Definitions:

Serratus Anterior

A muscle located on the side of the chest, playing a crucial role in the movement and rotation of the shoulder blade (scapula).

Pectoralis Minor

A thin, triangular muscle located beneath the pectoralis major, involved in movements of the scapula including downward rotation and depression.

Subclavius

A small muscle located beneath the clavicle, its action stabilizes and depresses the clavicle.

Erector Spinae

A group of muscles and tendons running along the spine, which extends the back and helps in maintaining an erect posture.