Which of the following statements is correct?
A)Full costing takes into account all resources sacrificed to achieve a specific objective.
B)Full costing only takes into account manufacturing costs.
C)Only variable costs are required to determine the selling price for a product.
D)Full costing cannot be used in the service industries.

Question

Quizplus · Accepted Answer

Full costing takes into account all resources sacrificed to achieve a specific objective, including both variable and fixed costs. It is a method of costing that considers direct costs (such as materials, labor costs) as well as indirect costs (such as rent, depreciation, and utilities) when determining the cost of a product or service. B, C, and D are incorrect statements.

Which of the Following Statements Is Correct