Which of the Following Statements Is True of Variable Costing

question 116

Multiple Choice

Which of the following statements is true of variable costing?

• A) It considers variable manufacturing overhead as period costs.
• B) It considers fixed manufacturing overhead as product costs.
• C) It considers variable selling and administrative costs as product costs.
• D) It considers fixed selling and administrative costs as period costs.

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Definitions:

Egocentrism

A cognitive bias in young children, and sometimes adults, where one has difficulty understanding or acknowledging perspectives other than one's own.

Decentered Thought

A cognitive ability to consider multiple aspects of a situation simultaneously, characteristic of more advanced stages of development.

Selfishness

The behavior or attitude of placing one's own needs or desires above the welfare of others, often at the expense of others' well-being.

Precausal Reasoning

A type of reasoning typical in early childhood where cause and effect relationships are understood in simplistic and sometimes magical ways.