Use the Information Below to Answer the Following Question(s)

question 152

Multiple Choice

Use the information below to answer the following question(s) .Urban Body Products Ltd.manufactures body wash liquid soap.The controller has provided the following information and stated that standard costing is used for manufacturing, marketing, and administrative costs. There were no beginning or ending inventories of materials or work-in-process.
-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)inventoriable method.
• E)absorption method.

---

Definitions:

Test Scores

The numerical outcomes resulting from standardized tests, often used to evaluate skills, proficiency, or knowledge in various subjects.

Tune Up

A process of making minor adjustments or modifications to improve the function or performance of a machine, system, or instrument.

Significance Level

The chance of falsely discrediting the null hypothesis in a statistical examination, usually symbolized by alpha.

Car Dealer

A commercial organization that retails brand-new or pre-owned vehicles, operating under a dealership agreement with a car manufacturer or its sales division.