The primary difference between variable and absorption costing is the accounting for_____.
A)beginning inventory costs
B)fixed manufacturing overhead
C)selling and administrative costs
D)variable manufacturing overhead

Question

Quizplus · Accepted Answer

The primary difference between variable and absorption costing is the accounting for fixed manufacturing overhead costs. Variable costing only includes variable manufacturing overhead in product costs, whereas absorption costing includes all manufacturing costs (both fixed and variable) in product costs.

The Primary Difference Between Variable and Absorption Costing Is the Accounting