Under Absorption Costing, Fixed Manufacturing Overhead Costs

question 150

Multiple Choice

Under absorption costing, fixed manufacturing overhead costs:

• A)are deferred in inventory when production exceeds sales.
• B)are always treated as period costs.
• C)are released from inventory when production exceeds sales.
• D)are ignored.

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Definitions:

Clayton Act

A U.S. antitrust law, passed in 1914, aimed at promoting competition and preventing monopolies by addressing specific practices not covered by the Sherman Act.

Treble Damages

A form of punitive damages awarded in a legal case that are three times the amount of actual compensatory damages.

Civil Actions

Legal proceedings initiated by individuals or entities (aside from the state) to seek relief or damages from another party.

Sherman Act

A foundational antitrust law in the United States aimed at promoting competition and restricting monopolistic practices.