Advocates of Throughput Costing Argue That ________

question 27

Multiple Choice

Advocates of throughput costing argue that ________.

• A) fixed manufacturing costs must be included as inventoriable costs and provide less incentive than absorption costing to build-up inventory to increase profits
• B) direct manufacturing labor is relatively fixed and therefore should not be included in inventory costs
• C) direct materials costs are a cost of the period and therefore should not be included in inventoriable costs
• D) including only direct materials as inventoriable costs provides less incentive than absorption costing to produce a build-up of inventory merely to increase profits

---

Definitions:

Epidemic

An outbreak of a disease that spreads quickly and affects many individuals at the same time within a geographic region.

National Borders

The defined geographical boundaries that separate the territory of one nation-state from another, often delineated through legal agreements and recognized by international law.

Structural Functionalist

A perspective in sociology that sees society as a complex system whose parts work together to promote solidarity and stability, focusing on the roles of institutions.

Addiction

A psychological and physical inability to stop consuming a chemical, drug, activity, or substance, despite it causing psychological and physical harm.