Which of the Following Is TRUE Concerning Throughput Costing

question 161

Multiple Choice

Which of the following is TRUE concerning throughput costing?

• A)Throughput contribution is the sum of revenues and direct costs.
• B)Throughput contribution is the difference between revenues and direct costs.
• C)Throughput contribution is the difference between revenues and variable direct labour.
• D)Throughput contribution is the difference between revenues and (variable direct labour + variable direct materials).
• E)Throughput contribution is the difference between revenues and variable direct materials costs.

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