Which of the Following Statements Is True of Absorption and Variable

question 226

Multiple Choice

Which of the following statements is true of absorption and variable costing methods?

• A) Both costing methods consider selling and administrative costs to be period costs.
• B) Variable costing considers variable selling and administrative costs to be product costs.
• C) Absorption costing considers fixed manufacturing overhead to be period costs.
• D) Both costing methods consider fixed manufacturing overhead to be product costs.

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Definitions:

Automatic Processing

The unconscious encoding of information about space, time, frequency, and well-learned information or skills.

Long-Term Storage

The phase of memory in which information is retained for extended periods of time, potentially indefinitely.

Chunking

is a method of organizing information into smaller, more manageable units or chunks, making it easier to remember and process.

Semantic Memories

Long-term memory processes that store general world knowledge, facts, concepts, and meanings about words and objects.