Which of the Following Statements in Relation to Direct Costing

question 62

Multiple Choice

Which of the following statements in relation to direct costing is correct?

• A) It treats all costs as period costs.
• B) It is sometimes called adaptable costing.
• C) It only recognised direct materials as a product cost.
• D) It only recognises as product costs those factory costs that vary with levels of production.

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Definitions:

Hobbies

Hobbies are leisure activities that individuals engage in for pleasure and relaxation, not as a main occupation or for profit.

Startup Costs

The initial expenses required to start a new business, including costs for legal services, marketing, equipment, and rent.

Unexpected Expenses

Costs that are not planned for or anticipated, often requiring immediate financial resources.

10 Percent

A term commonly used to represent a portion or fraction, often used in financial contexts to denote a percentage of an investment, profit, or other monetary values.