12. ________ is a method of inventory costing in which all variable manufacturing costs and all fixed manufacturing costs are included as inventoriable costs.

A. Variable costing

B. Mixed costing

C. Absorption costing

D. Standard costing

13. When evaluating if a company should accept a new contract to produce more product it should:

A. Evaluate all possible fixed costs of accepting the contract.

B. Evaluate the proposed contract using a contribution margin approach.

C. Accept the new contract if the sales price for the product is equal to or higher than the current sale price.

D. Accept the new contract if fixed costs will remain the same.