Under Variable Costing, Which of the Following Costs Would Be

question 7

Multiple Choice

Under variable costing, which of the following costs would be included in finished goods inventory?

• A)neither variable nor fixed factory overhead cost
• B)both variable and fixed factory overhead cost
• C)only variable factory overhead cost
• D)only fixed factory overhead cost

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Definitions:

Chronological

Organized or occurring in order of time of occurrence, often used in timelines, histories, and narratives to show sequence.

Cause-and-effect

A relationship where one event (the cause) leads directly to another event (the effect).

Problem-solution

A method of organizing information or arguments that first identifies a problem and then proposes one or more solutions for it.

Specific-to-general

A method of organization where details start with specific instances and lead to a general conclusion or understanding.