In Variable Costing,fixed Manufacturing Overhead Is Considered a Period Cost

question 287

Multiple Choice

In variable costing,fixed manufacturing overhead is considered a period cost because ________.

• A) these costs are indirectly related to production
• B) these are not incurred in the period in which the units are produced
• C) these costs are incurred whether or not the company manufactures any goods
• D) these costs are direct costs incurred for production

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Definitions:

Deductive Reasoning

The process of creating a specific research question about a focused point, based on a more general or universal principle.

Inductive Reasoning

The process of arriving at general conclusions from specific observations.

Controlled Experiment

A scientific test in which only one variable is changed at a time to isolate and measure its effect accurately.

Real-Life Effects

Actual impacts or outcomes that occur in everyday life, outside of controlled or experimental settings.