Amounts Spent for Charitable Contributions Are an Example of a (N)

question 70

Multiple Choice

Amounts spent for charitable contributions are an example of a (n) :

• A) committed fixed cost.
• B) committed variable cost.
• C) discretionary fixed cost.
• D) discretionary variable cost.
• E) engineered cost.

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Definitions:

Absorption Costing

An accounting method that includes all direct costs and overhead costs related to the production of a specific product.

Product Costs

Expenses directly attributable to the creation of a product, including material, labor, and overhead costs.

Variable Costing

A costing method that only includes variable production costs in product costs, treating fixed manufacturing costs as period expenses.

Product Costs

Costs that are directly tied to the production of goods, including raw materials, direct labor, and manufacturing overhead.