Which of the following statements is true of absorption and variable costing methods?

Select one:

A. Absorption costing considers fixed manufacturing overhead to be period costs.

B. Both costing methods consider fixed manufacturing overhead to be product costs.

C. Both costing methods consider selling and administrative costs to be period costs.

D. Variable costing considers variable selling and administrative costs to be product costs.

Both job order costing and process costing track the product costs of direct materials, direct labor, and manufacturing overhead through three inventory accounts on the balance sheet.

Select one:

True

False

There is no need for managers to have employees participate in developing the budget because the budget is a management tool.

Select one:

True

False

The manager of a revenue center is responsible for generating profits.

Select one:

True

False

Return on investment measures the profitability of an investment center but not the efficiency in using its assets.

Select one:

True

False

The discounted cash flow methods of evaluating capital investments are superior because they consider both the time value of money and the profitability of the investment.

Select one:

True

False