Which of the following statements is true regarding absorption costing?

A. It is not permitted to be used for tax reporting.
B. It requires only variable costs to be treated as product costs.
C. It is not permitted to be used for financial reporting.
D. It assigns all manufacturing costs to products.
E. It is not the traditional costing approach.


Answer: D

Business

You might also like to view...

The ________ will define the purpose of your research

A) primary sources B) receiver expectation C) problem statement D) knowledge management system E) organization of information

Business

What is the main objective of a company using the balance sheet approach to determine compensation for expatriate managers?

A. to give the manager the same standard of living plus extra for the inconvenience of moving B. to ensure that the company does not get stuck with paying the higher costs of living in an overseas location C. to give the manager an amount of compensation that enables the company to balance the books D. to give the manager the same amount of pay as in the home country but in the host country's currency E. to adjust the manager's pay downward so total compensation reflects the benefits of getting to travel

Business

With the straight-line method of bond amortization, interest expense is the same amount every period

Indicate whether the statement is true or false

Business

The primary purpose of the statement of cash flows is to provide information about a company's cash receipts and cash payments during an accounting period

Indicate whether the statement is true or false

Business