Unit Product Cost Calculations Using Absorption Costing Do NOT Include

question 271

Multiple Choice

Unit product cost calculations using absorption costing do NOT include ________.

• A) fixed manufacturing overhead
• B) variable manufacturing overhead
• C) variable selling and administrative costs
• D) direct materials

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Definitions:

Face Value

The nominal or original value of a security or financial instrument as stated by the issuer.

Note Payable

A written promise to pay a specific sum of money, on demand or at a set time, to the holder of the note.

Maturity Value

The amount that will be paid to the holder of a financial instrument at its maturity date, including principal and any remaining interest.

Times Interest Earned Ratio

A financial metric that measures a company's ability to meet its interest payments on outstanding debt.