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:

Corporate Scorekeeping

The practice of monitoring and recording the financial and operational performance indicators of a company.

Organizational Strategy

A plan of action designed by management to achieve specific long-term goals and objectives, shaping the company's direction and scope.

Benchmarking Partners

Organizations a company compares itself to for the purpose of measuring and improving performance, quality, or processes.

Internal

Pertaining to or happening within an organization or entity, as opposed to external factors or influences.