Some companies use throughput costing for internal purposes because
A) They believe only direct materials costs are truly variable in the short run
B) They believe direct labor costs are fixed in the short run
C) They believe all overhead costs are fixed in the short run
D) All of the above
Correct Answer:
Verified
Q102: Under absorption costing, production overhead is allocated
Q117: Throughput costing income statements:
A)Are useful for long-term
Q123: Absorption costing income statements are produced for:
A)External
Q127: Variable costing income statements are produced for
A)
Q127: Inventory cost under throughput costing includes:
A)Only direct
Q128: Practical capacity reflects:
A)Actual capacity levels
B)The capacity level
Q131: A company using absorption costing had an
Q131: Normal capacity reflects:
A)Actual capacity levels
B)The capacity level
Q134: Theoretical capacity reflects:
A)Actual capacity levels
B)The capacity level
Q138: A fixed overhead volume variance:
A)Is prorated to
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