Which of the following are considered to be product costs under absorption costing?
I.Variable manufacturing overhead.
II)Fixed manufacturing overhead.
III)Selling and administrative expenses.
A)I,II,and III.
B)I and II.
C)I and III.
D)I.

Question

Which of the following are considered to be product costs under absorption costing? 
I.Variable manufacturing overhead.
II)Fixed manufacturing overhead.
III)Selling and administrative expenses.
A)I,II,and III.
B)I and II.
C)I and III.
D)I.

Quizplus · Accepted Answer

Absorption costing includes both variable and fixed manufacturing overhead as product costs, but it does not consider selling and administrative expenses as they are classified as period costs under this method. Therefore, the correct choices are I and II.

Which of the Following Are Considered to Be Product Costs