Absorption costing would be based on which of the following?
A) Both fixed and variable costs of production
B) Fixed portion of production costs only
C) Variable portion of production costs only
D) None of the above

Question

Quizplus · Accepted Answer

Absorption costing includes both fixed and variable costs of production in the cost of goods sold. This method allocates all production costs to the units produced, regardless of whether they are fixed or variable.

Absorption Costing Would Be Based on Which of the Following