The Use of Either Absorption or Variable Costing Will Make

question 51

Multiple Choice

The use of either absorption or variable costing will make little difference in companies

• A)with large inventories.
• B)using JIT.
• C)with high fixed costs.
• D)with high variable costs.

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Definitions:

Common Stock

Equity ownership in a corporation, entitling holders to vote on corporate matters and receive dividends.

Stock Split

A measure taken by a company to split its current shares into numerous ones, aiming to increase the shares' liquidity.

Par Value

The nominal or face value of a stock or bond, representing the minimum amount the security is stated to be worth.

Common Stock Account

An equity account on a company's balance sheet representing the total amount of money invested by common stockholders plus the retained earnings of the company.