Non-Current Assets Are Any Liabilities That Are Used in the Operations

question 10

True/False

Non-current assets are any liabilities that are used in the operations of a business.

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Definitions:

Fixed Manufacturing Overhead

The set costs involved in the production process that do not change with the level of output, such as salaries and building leases.

Inventories

Items such as products, materials, and supplies held by a company for the purpose of resale or production.

Variable Costing

An accounting method that includes only variable production costs (materials, labor, and variable overhead) in the cost of goods sold, while fixed overhead costs are expensed in the period incurred.

Fixed Costs

Costs that do not vary with the level of production or sales activity, such as rent, salaries, and insurance premiums.