A Reliable Cost Accounting System Is Necessary for Accurate Pricing

question 94

Multiple Choice

A reliable cost accounting system is necessary for accurate pricing.The traditional method of product costing,where the costs of direct materials,direct labor,and factory overhead are included,is called ________ costing.

• A)absorption
• B)break-even
• C)direct
• D)variable

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Definitions:

Rental Price

The amount of money charged to rent a property, such as an apartment or house, typically billed on a monthly basis.

Causal Relationship

When one variable causes a change in another variable.

Explanatory Variables

Variables in a statistical model that are used to explain variations in the response variable.

Standard Deviation

A measure of the amount of variation or dispersion of a set of values, indicating how much the values deviate from the mean.