Advocates of Throughput Costing Maintain That

question 51

Multiple Choice

Advocates of throughput costing maintain that:

• A)both variable and fixed are necessary to produce goods; therefore, both types of costs should be inventoried
• B)all manufacturing costs plus some design costs should be inventoried
• C)fixed manufacturing costs are related to the capacity to produce rather than to the actual production of specific units
• D)Both A and C are correct.

---

Definitions:

Production Goals

Targets set by a business for the quantity and quality of products to be produced within a certain timeline.

Accounting Mechanism

The systematic process of recording, analyzing, summarizing, and reporting financial transactions of a business.

Game

An interactive activity or challenge that can range from simple entertainment to complex competitions with rules and objectives.

Budgeting Process

The procedure of planning future income and expenditures, allowing for prioritization and spending management.