The Principal Difference Between Variable Costing and Absorption Costing Centers

question 148

Multiple Choice

The principal difference between variable costing and absorption costing centers on:

• A)whether variable manufacturing costs should be included in product costs.
• B)whether fixed manufacturing costs should be included in product costs.
• C)whether fixed manufacturing costs and fixed selling and administrative costs should be included in product costs.
• D)whether selling and administrative costs should be included in product costs.

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Definitions:

Signature Card

A form signed by a bank customer that the bank uses to verify signature authenticity on all checks.

Forgeries

Illegal alterations or productions of documents, currency, or other items with the intent to deceive.

Customer's Bank Account

The bank account of a customer, used for transactions between the customer and a company.

Restrictive Endorsement

An endorsement on a check or other financial instrument limiting the way the funds can be used or restricting further endorsement.