Selling and administrative expenses are considered to be:
A)a product cost under variable costing.
B)a product cost under absorption costing.
C)part of fixed manufacturing overhead under variable costing.
D)a period cost under variable costing.

Question

Quizplus · Accepted Answer

Selling and administrative expenses are not related to the production of goods and thus cannot be considered a product cost. Therefore, they are treated as a period cost under variable costing.

Selling and Administrative Expenses Are Considered to Be