"Super-Variable Costing" Assumes That

question 101

Multiple Choice

"Super-variable costing" assumes that

• A)all costs are variable in the long run.
• B)all costs are variable in the short run.
• C)only direct materials are variable in the short run.
• D)fixed costs are period costs in the long run.
• E)all cost are fixed in the long run.

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Definitions:

Accounts Receivable

The amount customers are required to pay to a company for already delivered services or products.

FOB Shipping Point

A term used in shipping agreements indicating the buyer is responsible for the goods and shipping costs as soon as they leave the seller's premises.

Perpetual System

An inventory accounting system that records inventory purchases and sales in real-time, providing a continuous record of inventory levels.

Freight Costs

Freight Costs entail the charges incurred for the transportation of goods by land, sea, or air.