Which of the Following Is Not True of the Direct

question 12

Multiple Choice

Which of the following is not true of the direct costing procedure?

• A) Variable and fixed costs are considered as part of the cost of goods manufactured.
• B) The cost of goods sold,based solely on variable costs,is subtracted from net sales to arrive at the manufacturing margin.
• C) Variable selling expenses are deducted from the manufacturing margin.
• D) Variable administrative expenses are deducted from the manufacturing margin.

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Definitions:

Oligopolists

Firms that are part of an oligopoly, a market structure characterized by a small number of firms that have significant control over market prices and competition.

Homogeneous Product

A product that is viewed as identical no matter who produces it, making it impossible for consumers to distinguish between products based on brand or quality.

Peach Suppliers

Businesses or individuals that provide peaches to the market, contributing to the supply of this specific type of fruit.

Oligopolists

Companies within an oligopoly, a market structure characterized by a small number of firms controlling a large portion of the market share.