Which of the Following Statements Is True

question 130

Multiple Choice

Which of the following statements is true?

• A)Under variable costing,direct materials and direct labor are expensed as period expenses.
• B)Under variable costing,fixed manufacturing overhead is expensed as period expenses.
• C)Fixed manufacturing overhead costs are treated the same under both absorption costing and variable costing.
• D)Reported income under absorption costing is not affected by production level changes.
• E)Under absorption costing,fixed manufacturing overhead is expensed as period expenses.

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Definitions:

Central Tendency

A statistical measure that identifies a single value as representative of an entire distribution of data, typically the mean, median, or mode.

Average Time

The mean period taken for a process or event to occur.

Median Time

Median Time refers to the middle value in a series of time measurements, dividing the data set into two halves.

Quantitative Data

Information that can be measured and represented through numerical values, relating to quantities.