Advocates of Throughput Costing Argue That ________

Multiple Choice

Advocates of throughput costing argue that ________.

A) fixed manufacturing costs must be included as inventoriable costs and provide less incentive than absorption costing to build-up inventory to increase profits
B) direct manufacturing labor is relatively fixed and therefore should not be included in inventory costs
C) direct materials costs are a cost of the period and therefore should not be included in inventoriable costs
D) including only direct materials as inventoriable costs provides less incentive than absorption costing to produce a build-up of inventory merely to increase profits