Which of the Following Statements Pertain to Both Variable Costing

question 71

Multiple Choice

Which of the following statements pertain to both variable costing and absorption costing?

• A) The income statement discloses the amount of gross margin generated during the reporting period.
• B) Fixed selling and administrative expenses are treated in the same manner as fixed manufacturing overhead.
• C) Both variable and absorption costing can be used for external financial reporting.
• D) Variable selling costs are written-off as expenses of the accounting period.
• E) Fixed manufacturing overhead is attached to each unit produced.

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Definitions:

Satisfaction

The feeling of contentment or pleasure derived from meeting one's expectations or needs.

Significant Others

Individuals who have a major importance or influence in one's life, often referring to partners, close friends, or family members.

Divorce

The legal termination of a marriage by a court or other competent body, dissolving the marital union.

Correlated

When two or more variables have a mutual relationship or connection where a change in one is associated with a change in the other.