For Managerial Accounting Purposes,how Are Fixed Manufacturing Costs Treated

question 40

Multiple Choice

For managerial accounting purposes,how are fixed manufacturing costs treated?

• A)As product costs.
• B)As period costs.
• C)As opportunity costs.
• D)As variable costs.

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Definitions:

Merchandising Company

A business that sells finished goods to consumers, making profits through the buying and selling activities.

Inventory

The total of all goods available for sale or use, including raw materials, work-in-progress, and finished goods.

Perpetual Inventory

A system of accounting for inventory that records the sale or purchase of inventory immediately through computerized systems.

Periodic Inventory

An accounting method where inventory is physically counted at specific intervals to determine the cost of goods sold and ending inventory.