Product Costs for Variable Costing Include Direct Materials,direct Labor and ________

question 46

Multiple Choice

Product costs for variable costing include direct materials,direct labor and ________.

• A) variable selling costs
• B) fixed manufacturing overhead costs
• C) variable manufacturing overhead costs
• D) variable manufacturing overhead costs plus variable selling costs

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Definitions:

Vertical Analysis

A method of financial statement analysis in which each entry of the main categories of the financial statements is listed as a percentage of another item.

Gross Profit

The financial gain made after subtracting the cost of goods sold from the total revenue generated from sales.

Accounts Receivable Turnover

A financial ratio that measures how frequently a company collects its average accounts receivable balance in a period.

Days' Sales

A measure of the average number of days it takes a company to collect revenue after a sale has been made, often used in understanding liquidity.