Which of the Following Is True of Variable Costing

question 207

Multiple Choice

Which of the following is true of variable costing?

• A) It expenses administrative costs as cost of goods sold.
• B) It treats direct manufacturing costs as a product cost.
• C) It includes fixed manufacturing overhead as an inventoriable cost.
• D) It is required for external reporting to shareholders.

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Definitions:

Normalization Principle

A principle advocating that people with disabilities should have living conditions akin to those of the rest of society.

FASD

Fetal Alcohol Spectrum Disorders; a group of conditions that can occur in a person whose mother drank alcohol during pregnancy.

Impairments/Problems

Difficulties or dysfunctions in physical, mental, or psychological processes that can significantly affect an individual's normal life activities.

Female Sexual Arousal Disorder

A condition where a woman consistently fails to attain or maintain sufficient sexual excitement, causing personal distress.