Which of the following is a true statement regarding absorption and/or direct costing?
A) A firm can choose to use either absorption or direct costing for income tax purposes.
B) A firm can choose to use either absorption or direct costing for financial reporting purposes.
C) Direct costing assigns only direct materials and direct labor to products.
D) Absorption costing includes fixed overhead in product costs whereas direct costing does not.
Correct Answer:
Verified
Q21: In order to achieve higher quality cost
Q22: Direct costing may be used for:
A)internal reporting
Q23: The three components of product costs are:
A)direct
Q24: The three sections of a statement of
Q25: The change in the amount of manufacturing
Q27: Total manufacturing costs for the month on
Q28: If all units produced during March are
Q29: The predetermined overhead application rate based on
Q30: Absorption costing and direct costing differ in
Q31: Which of the following will cause income
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