One of the Primary Differences Between Overhead Costs in Non-Manufacturing

question 94

Multiple Choice

One of the primary differences between overhead costs in non-manufacturing settings and manufacturing settings is

• A) that non-manufacturing variable and fixed costs are inventoriable for financial reporting in non-manufacturing companies.
• B) GAAP requires different treatment of non-manufacturing costs for both manufacturing and non-manufacturing companies.
• C) only non-manufacturing companies must include overhead costs as inventoriable costs for financial reporting.
• D) overhead is typically negligible in a non-manufacturing setting.
• E) only manufacturing companies are required to include overhead costs in their inventoriable costs for financial reporting.

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Definitions:

Skinner--operant Conditioning

An adaptation process in learning where the level of a behavior's intensity is recalibrated through reward systems or disciplinary actions.

Pavlov--classical Conditioning

A learning process discovered by Ivan Pavlov that occurs through associations between an environmental stimulus and a naturally occurring stimulus.

Piaget--cognitive Development

The theory proposed by Jean Piaget that describes how children develop logical thinking through a series of stages.

Retrieval Cues

Stimuli or signals that can trigger the recall of information from memory.