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    Management and Cost Accounting
  4. Exam
    Exam 7: Income Effects of Alternative Cost Accumulation Systems
  5. Question
    Proponents of Variable Costing Argue That Inventories Have Value Only
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Proponents of Variable Costing Argue That Inventories Have Value Only

Question 2

Question 2

Multiple Choice

Proponents of variable costing argue that inventories have value only to the extent that they:


A) avoid the necessity for incurring costs in the future.
B) eliminate depreciation charges.
C) can be sold for enough to cover costs and a reasonable profit.
D) turn over in less than one year.

Correct Answer:

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