When the Distinction Between Variable and Fixed Costs Is One

question 122

Multiple Choice

When the distinction between variable and fixed costs is one of the important elements in the preparation of the income statement, the method used should be the

• A) capitalization method.
• B) contribution margin method.
• C) gross margin method.
• D) inventorial method.
• E) absorption method.

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Definitions:

Retail Installment Sale

A transaction where the buyer pays for goods in regular installments while the seller retains ownership until the full price has been paid.

Food And Drugs

Pertains to the regulation and oversight of the production, distribution, and safety of food products and pharmaceuticals.

Consumer Product Safety Commission

A U.S. government agency responsible for protecting the public from unreasonable risks of injury or death associated with consumer products.

Food And Drug Administration

The Food and Drug Administration (FDA) is a federal agency of the United States responsible for the regulation and supervision of food safety, tobacco products, dietary supplements, prescription and over-the-counter pharmaceutical drugs, vaccines, biopharmaceuticals, medical devices, and veterinary products.