Given the following data,total product cost per unit under absorption costing will be greater than total product cost per unit under variable costing.

Question

Quizplus · Accepted Answer

Under absorption costing, fixed manufacturing overhead costs are included in product costs, whereas under variable costing, fixed manufacturing overhead costs are treated as period costs and are expensed in the period incurred. Therefore, total product cost per unit under absorption costing will be greater than under variable costing.

Given the Following Data,total Product Cost Per Unit Under Absorption