Advocates of Throughput Costing Maintain That ________

question 156

Multiple Choice

Advocates of throughput costing maintain that ________.

• A) both variable and fixed are necessary to produce goods; therefore, both types of costs should be inventoried
• B) all manufacturing costs plus some design costs should be inventoried
• C) fixed manufacturing costs are related to the capacity to produce rather than to the actual production of specific units
• D) except direct labor no other costs are truly variable in output

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Definitions:

Fundamental Attribution Error

The bias of attributing others' actions more to their character than to external factors, overlooking the influence of situational aspects.

Dispositional Traits

Enduring personality characteristics that influence behavior across different situations and over time.

False Consensus Effect

The cognitive bias whereby people tend to overestimate how much others agree with their own beliefs, attitudes, or behaviors.

Stimulus Overload Effect

A phenomenon where individuals experience stress or cognitive overload due to an excessive amount of stimuli to process.