Under the absorption cost approach, all of the following are included in the cost base EXCEPT
A)direct materials.
B)fixed manufacturing overhead.
C)selling and administrative costs.
D)variable manufacturing overhead.

Question

Quizplus · Accepted Answer

Under the absorption cost approach, direct materials, fixed manufacturing overhead, and variable manufacturing overhead are all included in the cost base. Selling and administrative costs are not included in the cost base.

Under the Absorption Cost Approach, All of the Following Are