The True Statement in Relation to Direct Costing Is

question 56

Multiple Choice

The true statement in relation to direct costing is:

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

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Definitions:

Distributor

An intermediary in the distribution channel that buys products from manufacturers and then sells them to retailers or directly to the consumers.

Clayton Act

A U.S. antitrust law enacted in 1914 to prevent anti-competitive practices and monopolies, supplementing the Sherman Antitrust Act.

Channel Members

Businesses or individuals involved in the process of making a product or service available for use or consumption by a consumer or business user.

Tying Arrangement

A sales practice where the seller requires the buyer to purchase a secondary product as a condition of buying a primary product, often scrutinized under antitrust laws.