Which of the Following Statements Is Correct Using the Direct

question 1

Multiple Choice

Which of the following statements is correct using the direct costing concept?

• A)All manufacturing costs are included in the calculation of cost of goods manufactured.
• B)Only fixed costs are included in the calculation of cost of goods manufactured, while variable costs are considered period costs.
• C)Only variable manufacturing costs are included in the calculation of cost of goods manufactured, while fixed costs are considered period costs.
• D)All manufacturing costs are considered period costs.

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Definitions:

Brainstorming Process

A creative technique of generating a large number of ideas to solve a problem within a group, without immediate critique.

Electronic Brainstorming

A creative group problem-solving technique that uses electronic devices to gather ideas from participants simultaneously and anonymously.

Traditional Brainstorming

A creative problem-solving technique that involves generating a large number of ideas in a group setting, without immediate criticism.

Piggybacking

The act of attaching or linking something to an already existing system or process for an additional benefit or gain.