Ask Question
27 December, 20:50

The primary difference between variable costing and absorption costing is

(A) in absorption costing, fixed selling and administrative costs are product costs.

(B) in variable costing, variable selling and administrative costs are product costs.

(C) in variable costing, fixed manufacturing overhead is a product cost.

(D) in absorption costing, fixed manufacturing overhead is a product cost.

+1
Answers (1)
  1. 27 December, 21:45
    0
    The correct answer is letter "D": in absorption costing, fixed manufacturing overhead is a product cost.

    Explanation:

    Absorption costing or full costing includes all costs related to the production process like the fixed costs. Variable costing, on the other hand, only includes the variable costs from the production. Absorption costing incorporates allocating fixed overhead costs of each unit produced during a certain period.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “The primary difference between variable costing and absorption costing is (A) in absorption costing, fixed selling and administrative costs ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers