Question: Why is the term direct costing a misnomer for variable costing?

Why is the term direct costing a misnomer for variable costing?

Step by Step Solution

★★★★★

3.37 Rating (156 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

The term direct costing is often considered a misnomer for variable costing because it can create co... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Managerial Accounting Questions!

Q:

The term direct costing is a misnomer. Variable costing is a better term for the product-costing method. Do you agree or disagree? Why?

Q:

Why is the term direct costing a misnomer?

Q:

Why is the term double-entry an appropriate expression for describing an accounting system?

Q:

Why is the term direct costing a misnomer? Question content area bottom Part 1 A. Variable (direct) costing does not include all direct costs as inventoriable costs. Only variable direct...

Q:

Why is the term direct costing a misnomer? A. Variable (direct) costing includes as inventoriable costs not only direct manufacturing costs but also some indirect costs (variable indirect...

Q:

Why is the term direct costing a misnomer?

Q:

Briefly explain the difference between absorption costing and variable costing. Timing is the key in distinguishing between absorption and variable costing. Explain this statement. The term direct...

Q:

The term direct costing is a misnomer. Variable costing is a better term for the product-costing method. Do you agree or disagree? Why?

Q:

2.31 The term direct costing is a misnomer. Variable costing is a better term for this product-costing method. Do you agree or disagree? Why?

Q:

The term direct costing means that only direct variable costs are considered inventoriable under variable costing whereas fiond direct costs, such as marketing casts, irfe. considered periad costs....

Q:

A classmate tells you that the following compound has the name 3-propylhexane. a. Is he right? If not, what error did he make and what is the correct name? b. How could you redraw the condensed...

Q:

On the basis of the following data related to current assets for Mission Co. at December 2016, prepare a partial balance sheet in good form. Cash and cash equivalents $100,000 Notes receivable 50,000...

Q:

Knowledge Check 0 1 Which of the following is deducted from the total selting and administrative expense budget to determine the cash disbursemerts for selling and administrative expense budget?...

Q:

1. What adaptations might you expect to observe in the body shapes of animals during an extended period of global warming?

Q:

MRP, EOQ and JIT. MacroHard Corp produces J-Pods, music players that can download thousands of songs. MacroHard forecasts that demand in 2010 will be 48,000 J-Pods. The variable production cost of...

Q:

Effect of management evaluation criteria on EOQ model. Computers 4 U is an online company that sells computers to individual consumers. The annual demand for one model that will be shipped from the...

Q:

Effect of EOG ordering on supplier costs (continuation of Problem 20-29). IMBest Computers supplies computers to Computers 4 U. Terry Moore, the president of IMBest, is pleased to hear that Computers...

Q:

At which point does marginal cause (mc) equal average variable cost (Avc)?

Q:

1. State the hypothesis test necessary for the difference in means of each variable with the exception of the of the health score after the intervention. 2. Estimate the standard error of the...

Q:

1. Does a statement of cash flows disclose payments of cash to purchase cash equivalents? Does it disclose receipts of cash from selling cash equivalents? 2. Identify the categories of cash flows...