Fixed manufacturing costs are written off as current expenses of the period in which they occurred when using -------- costing.

(A) direct

(B) standard

(C) absorption

(D) differential

When inventory costing system is NOT acceptable for financial reporting purposes?

(A) absorption costing

(B) direct costing

(C) standard costing

(D) variable costing

Which of the following would Not be relevant to be a decision about whether to continue making a part or whether to buy it from an outside supplier?

(A) alternatives uses for the plant where the part was produced if the part is purchased

(B) a fee previously spent for design of the part

(C) the variable costs of making the part

(D) the number of additional employees needed to make the part