________ Is a Method of Inventory Costing in Which All

question 35

Multiple Choice

________ is a method of inventory costing in which all variable and fixed manufacturing costs are included as inventoriable costs.

• A)Mixed costing
• B)Variable costing
• C)Absorption costing
• D)Standard costing

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Definitions:

Standard Amount

The budgeted or pre-determined cost of materials, labor, and overhead that is used as a benchmark for actual costs.

Variable Manufacturing Overhead

The segment of manufacturing overhead expenses that fluctuates in relation to the volume of production output.

Actual Output

The real quantity of goods or services produced by a company, as opposed to planned or potential output.

Labor Efficiency Variance

The difference between the actual hours worked and the hours that should have been worked, considering the standard labor rate. It measures labor productivity.