The direct costing method is important because: a) allows the calculation of the break-even point b) the products absorb all direct and indirect costs c) is recommended by tax legislation d) takes into account only direct costs

The direct costing method is important because: a) allows the calculation of the break-even point b) the products absorb all direct and indirect costs c) is recommended by tax legislation d) takes into account only direct costs

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter8: Tactical Decision-making And Relevant Analysis

Section: Chapter Questions

Problem 2MCQ: Costs that cannot be affected by any future action are called a. differential costs. b. sunk costs....

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Question

The direct costing method is important because:

a) allows the calculation of the break-even point

b) the products absorb all direct and indirect costs

c) is recommended by tax legislation

d) takes into account only direct costs

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