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Which statement about rules is NOT true?
Variable Costing
An accounting method that includes only variable production costs—direct materials, direct labor, and variable manufacturing overhead—in the cost of goods sold.
Absorption Costing
A calculation approach that encompasses all expenses of production, such as materials, labor, and all overheads, both variable and fixed, in determining a product's price.
Variable Production Costs
Costs that vary directly with the level of production, such as raw materials and direct labor.
Absorption Costing
This approach to bookkeeping encompasses all production-associated expenses, including direct materials, direct labor, and all manufacturing overheads, both variable and fixed, in calculating the product's price.
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