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:

Unemployment Rate

The percentage of people in the labor pool who are without employment and are actively hunting for jobs.

Labor-Force Participation Rate

The percentage of the working-age population that is in the labor force, including both employed and unemployed individuals.

Employed

The state of having paid work or being engaged in an activity or enterprise as a means of earning an income.

Labor-Force Participation Rate

The proportion of the adult population that is either employed or actively looking for employment.