Which of the Following Terms Is Not Used in Referring

question 48

Multiple Choice

Which of the following terms is not used in referring to common costs?

• A)Allocated cost
• B)Unavoidable cost
• C)Traceable cost
• D)All of these answer choices are used in referring to common costs.

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Definitions:

Variable Costing

An accounting method that only considers variable costs (costs that fluctuate with the level of output) in calculating the cost of goods sold and in decision-making.

Closing Inventory

The total value of goods remaining unsold at the end of an accounting period.

Finished Goods

Products that have completed the manufacturing process but have not yet been sold or distributed to end customers.

Standard Costs

Predetermined or budgeted costs for products, services, or operations that serve as benchmarks for measuring performance by comparing them with actual costs.