Which of the Following Best Describes Costs Assigned to the Product

question 96

Multiple Choice

Which of the following best describes costs assigned to the product under the variable 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:

Efficient Level

Efficient Level refers to the optimal amount of production or activity that maximizes benefits or utility while minimizing costs or waste.

Impose a Tax

The act of a governing body levying a financial charge or other levy upon a taxpayer, which can affect individuals, entities, or transactions.

Efficient Amount

The optimal level of production or consumption where resources are utilized in the most effective manner without waste.

External Cost

A cost of economic activity not borne by the producer or consumer, but rather by a third party or the environment, often leading to market failure.