Under Variable Costing, Which of the Following Costs Would Not

question 78

Multiple Choice

Under variable costing, which of the following costs would not be included in finished goods inventory?

• A)wages of machine operator
• B)steel costs for a machine tool manufacturer
• C)salary of factory supervisor
• D)electricity used by factory machinery

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Definitions:

Original Treatment

This could refer to the initial set of conditions or interventions in an experiment or study, especially before any variables are changed for further testing.

Compensating Differential

A difference in wages that arises from non-monetary characteristics of different jobs, such as risk or undesirable location.

Baker

A person who primarily bakes and sells bread, pastries, and other baked goods as their profession.

Long Hours

The situation of working a significantly larger number of hours than the standard working time, often leading to stress and health issues.