Which of the Following Best Describes Costs Assigned to the Product

question 26

Multiple Choice

Which of the following best describes costs assigned to the product under the absorption costing method?
Direct labor (DL)
Direct materials (DM)
Variable selling and administrative
Variable manufacturing overhead
Fixed selling and administrative
Fixed manufacturing overhead

• A) DL, DM, variable selling and administrative costs, and variable manufacturing overhead.
• B) DL, DM, and variable manufacturing overhead.
• C) DL, DM, variable manufacturing overhead, and fixed manufacturing overhead.
• D) DL and DM.
• E) DL, DM, fixed selling and administrative, and fixed manufacturing overhead.

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Definitions:

Problem Solving

The process of identifying a challenge and finding an effective solution for it.

Cognitive Development

The process by which individuals acquire and evolve their thinking abilities, including perception, logic, memory, and language.

Conservation

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Object Permanence

The understanding that objects continue to exist even when they cannot be seen, heard, or otherwise sensed, a concept developed in infancy.