Which of the Following Is True Concerning Throughput Costing

question 44

Multiple Choice

Which of the following is true concerning throughput costing?

• A) It is also called super-absorption costing.
• B) It treats all costs except those related to direct labour as period costs.
• C) It provides more incentive to build-up inventories than does absorption costing.
• D) It provides more incentive to build-up inventories than does variable costing.
• E) Other things being equal, is more conservative than absorption costing.

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