Which of the Following Is Not a Reason to Classify

question 199

Multiple Choice

Which of the following is not a reason to classify costs as either product or period costs?

• A)To determine unit manufacturing costs
• B)To determine if the costs are fixed or variable
• C)To analyze costs for control purposes
• D)To report production costs on the income statement

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Definitions:

Obligation

A duty or commitment to pay money or perform some action.

Equivalent

Equal in value, amount, function, meaning, or status; often used in mathematics to describe expressions or amounts that are the same when compared or evaluated.

Compounded Quarterly

Refers specifically to the computation of interest at four intervals in a year, on the initial investment alongside the interest from preceding periods.

Repaid

The act of paying back money previously borrowed from a lender.