Under absorption costing
A)selling and administration overhead costs are inventoried.
B)selling and administration overhead costs are expensed as incurred.
C)only variable selling and administration costs are expensed while fixed selling and administration costs are inventoried.
D)only fixed selling and administration costs are expensed while variable selling and administration costs are inventoried.

Question

Quizplus · Accepted Answer

Under absorption costing, all manufacturing costs (both fixed and variable) are included in the cost of the product and thus inventoried. Selling and administration overhead costs, whether fixed or variable, are considered period costs and are expensed as incurred.

Under Absorption Costing