Expenditures That Add to the Utility of Fixed Assets for More

question 70

Multiple Choice

Expenditures that add to the utility of fixed assets for more than one accounting period are

• A) committed expenditures
• B) revenue expenditures
• C) utility expenditures
• D) capital expenditures

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Definitions:

Variable Costing

An accounting method that includes only variable production costs (costs that change with the level of output) in the cost of manufactured goods.

Absorption Costing

Absorption costing is a method of inventory costing that includes all manufacturing costs - direct materials, direct labor, and both variable and fixed manufacturing overhead - in the cost of a product.

Absorption Costing

An accounting method that includes all manufacturing costs — direct materials, direct labor, and both variable and fixed manufacturing overhead — in the cost of a product.

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