Which of the Following Statements Is TRUE of Absorption and Variable

question 172

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:

Quantitative Forecasting

A method of predicting future events or trends based on numerical data and statistical techniques.

Human Capital

The collective skills, knowledge, and experience possessed by an organization's workforce, viewed as a significant asset.

Organizational Indices

Quantitative measures or metrics used to gauge an organization's performance, health, or alignment with strategic objectives across various dimensions.

Delphi Technique

A method of forecasting and decision-making involving rounds of anonymous input and feedback from a panel of experts.