Under Throughput Costing, Inventory Is Valued Using

question 61

Multiple Choice

Under throughput costing, inventory is valued using

• A) Direct materials costs only
• B) Prime costs only
• C) Variable costs only
• D) Conversion costs only

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Definitions:

Novation

The act of replacing an original party in a contract with a new party, with the consent of all involved, effectively creating a new contract.

Previous Valid Obligation

A duty or commitment that has been legally recognized and must be fulfilled as previously agreed or contracted.

Novation

The act of replacing an old obligation with a new one, thereby extinguishing the original obligation.

Consideration

In contract law, the benefit or value that each party agrees to give or receive as part of a legal agreement.