Which of the Following Best Describes Costs Assigned to the Product

question 26

Multiple Choice

Which of the following best describes costs assigned to the product under the absorption costing method?
Direct labor (DL)
Direct materials (DM)
Variable selling and administrative
Variable manufacturing overhead
Fixed selling and administrative
Fixed manufacturing overhead

• A) DL, DM, variable selling and administrative costs, and variable manufacturing overhead.
• B) DL, DM, and variable manufacturing overhead.
• C) DL, DM, variable manufacturing overhead, and fixed manufacturing overhead.
• D) DL and DM.
• E) DL, DM, fixed selling and administrative, and fixed manufacturing overhead.

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Definitions:

Means-End Analysis

A problem-solving strategy that involves breaking down a problem into smaller problems and solving each one to reach an overall goal.

Working Backwards

A problem-solving strategy that involves starting from the desired outcome and working in reverse order to determine the steps needed to achieve that goal.

Mental Set

The tendency to apply a familiar strategy to the solution of a problem without carefully considering the special requirements of that problem.

Overhead Projector

An optical device used to project images onto a screen, typically for presentations or educational purposes.