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A cost that is fixed per unit is an example of a:
A variable cost is one that varies in total but is fixed per unit.
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There are a variety of ways of classifying costs of an object as either fixed or variable. The most accurate method is considered to be:
The most accurate method and method mentioned within the AICPA text is the regression analysis method.
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An example of an internal failure cost is:
Rework is an internal failure cost.
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Which of the following statements is correct regarding the difference between the absorption costing and variable costing methods?
When production is greater than sales, absorption costing income is greater than variable costing income.
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Using the variable costing method, which of the following costs are assigned to inventory?
A: Variable selling and admin costs B: Variable factory overhead costs
Under variable costing, only the variable manufacturing costs are assigned to inventory.
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Which of the following would be classified as a fixed cost?
No matter how much production occurs at the warehouse each year, insurance will remain fixed whereas the more production, the more direct materials cost.
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