Which of the Following Statements Is Correct

question 13

Multiple Choice

Which of the following statements is correct?

• A)Full costing takes into account all resources sacrificed to achieve a specific objective.
• B)Full costing only takes into account manufacturing costs.
• C)Only variable costs are required to determine the selling price for a product.
• D)Full costing cannot be used in the service industries.

---

Definitions:

Consumption

The action of using goods or services for personal use, satisfaction, or to fulfill needs.

Expected Income Stream

The anticipated series of payments received over time, often from investments, employment, or other sources of income.

Permanent Income Hypothesis

A theory suggesting that people's consumption choices are based on their long-term average income rather than their current income.

Tax Cut

A reduction in the amount of taxes imposed by a government, aiming to stimulate economic growth or achieve other policy objectives.