Which of the Following Is a True Statement Regarding Absorption

question 70

Multiple Choice

Which of the following is a true statement regarding absorption and/or direct costing?

• A)A firm can choose to use either absorption or direct costing for income tax purposes.
• B)A firm can choose to use either absorption or direct costing for financial reporting purposes.
• C)Direct costing assigns only direct materials and direct labor to products.
• D)Absorption costing includes fixed overhead in product costs whereas direct costing does not.

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Definitions:

Sigmund Freud

Austrian neurologist and the founder of psychoanalysis, a method for treating psychopathology through dialogue between a patient and a psychoanalyst.

Inferiority

A feeling of lower standing compared to others, which can stem from real or perceived shortcomings and can motivate efforts to improve oneself or lead to feelings of resignation.

Disturbed Person

An individual experiencing mental or emotional disruption, impacting their daily functioning or behavior.

Smoking

The act of inhaling and exhaling the smoke of tobacco or a drug, which can lead to various health issues including lung cancer.