The unit cost of a product is always higher in variable costing than in absorption costing.

Name: The unit cost of a product is always higher in variable costing than in absorption costing.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The unit cost of a product is always higher in absorption costing than in variable costing as absorption costing treats fixed manufacturing overhead as an inventoriable costs whereas variable costing treats it as period costs.

The Unit Cost of a Product Is Always Higher in Variable