The Use of Either Absorption or Variable Costing Will Make

question 101

Multiple Choice

The use of either absorption or variable costing will make little difference in companies

• A) with large inventories.
• B) using just-in-time inventory methods.
• C) with high fixed costs.
• D) with high variable costs.

---

Definitions:

Tax Rate

The percentage defining how much of a person's or business's income is allocated to taxes.

Bond Issues

Financial securities issued by corporations or governments to raise capital by borrowing from investors, to be repaid with interest at maturity.

Cost of Preferred Stock

The required rate of return for a firm's preferred stock, considering dividend payouts and the stock's price.

Annual Dividend

The total amount of dividend payments a shareholder receives from a stock or investment in a year.