Which of the Following Statements Is True

question 78

Multiple Choice

Which of the following statements is true?

• A) Periodic counting and cycle counting generally both count every item in stock.
• B) Periodic counting and cycle counting generally both do not count every item in stock.
• C) Periodic counting generally counts every item in stock, whereas annually cycle counting generally does not daily.
• D) Cycle counting generally counts every item in stock, whereas periodic counting generally does not.
• E) Periodic counting generally occurs more frequently than cycle counting.

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Definitions:

Fixed Cost Per Unit

The total fixed costs of production divided by the quantity of output produced, indicating how fixed costs dilute as production volume increases.

Mixed Cost

A cost composed of a fixed and variable component, changing with the level of output or activity.

Variable Cost

A cost that varies in direct proportion to changes in the level of activity or production volume.

Fixed Cost

Costs that do not vary with the level of output or sales, such as rent, salaries, and insurance.