Under Absorption Costing,fixed Manufacturing Overhead Costs Appear on Two Places

question 20

Multiple Choice

Under absorption costing,fixed manufacturing overhead costs appear on two places on the income statement that include ________ and ________.

• A) usage variance for fixed overhead costs; cost of goods sold
• B) production volume variance; cost of goods sold
• C) efficiency variance for fixed overhead costs; production volume variance
• D) efficiency variance for fixed overhead costs; cost of goods sold

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Definitions:

Future Value

The value of an asset or amount of money at a specified future date, taking into account variables such as interest rates or returns on investment.

Interest

The fee associated with the opportunity to borrow capital, often specified in terms of an annual percentage rate.

Future Value

The predicted amount of money that a current investment will grow to at a certain future date, based on an assumed rate of growth or interest rate.

Interest

Interest is the charge for the privilege of borrowing money, typically expressed as an annual percentage rate.