Which of the Following Best Describes Costs Assigned to the Product

question 83

Multiple Choice

Which of the following best describes costs assigned to the product under the variable costing method?
Direct labor (DL)
Direct materials (DM)
Variable selling and administrative (VSA)
Variable manufacturing overhead (VOH)
Fixed selling and administrative (FSA)
Fixed manufacturing overhead (FOH)

• A)DL,DM,VSA,and VOH.
• B)DL,DM,and VOH.
• C)DL,DM,VOH,and FOH.
• D)DL and DM.
• E)DL,DM,FSA,and FOH.

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Definitions:

Net Sales

The amount of sales generated by a company after deducting returns, allowances for damaged or missing goods, and any discounts allowed.

Perpetual Inventory System

An accounting methodology that records goods transactions immediately through the use of electronic systems, continuously updating inventory records.

Sales Returns

The process of returning purchased goods to the seller, often resulting in a refund to the buyer and an adjustment in sales revenue for the seller.

FOB Shipping Point

A shipping term indicating that the buyer assumes ownership and responsibility for goods at the seller's location, and thus is responsible for the shipping costs and potential damages.