Which of the following is TRUE concerning throughput costing?
A) Throughput contribution is the sum of revenues and direct costs.
B) Throughput contribution is the difference between revenues and direct costs.
C) Throughput contribution is the difference between revenues and variable direct labour.
D) Throughput contribution is the difference between revenues and (variable direct labour + variable direct materials) .
E) Throughput contribution is the difference between revenues and variable direct materials costs.
Correct Answer:
Verified
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