A Portion of the Total Fixed Manufacturing Overhead Cost Incurred

question 147

Multiple Choice

A portion of the total fixed manufacturing overhead cost incurred during a period may:

• A)be excluded from cost of goods sold under absorption costing.
• B)be charged as a period cost with the remainder deferred under variable costing.
• C)never be excluded from cost of goods sold under absorption costing.
• D)never be excluded from cost of goods sold under variable costing.

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Definitions:

Capital Gains

The increase in the value of an investment or real estate from the purchase price to the selling price, not realized until the asset is sold.

Interest Income

Income that is earned from deposit accounts or investments that pay interest, such as savings accounts, bonds, or loans.

Nova Scotia

A province located on Canada's southeastern coast, known for its high tides, lobster fishing, and historic sites.

Capital Gains

The profit earned from the sale of an asset or investment for more than its purchase price.