Which of the following would be included in the cost of a product manufactured according to absorption costing?
A)advertising expense
B)sales salaries
C)depreciation expense on factory building
D)office supplies costs

Question

Quizplus · Accepted Answer

Absorption costing includes all manufacturing costs, both variable and fixed, in the cost of a product. Depreciation expense on a factory building is a fixed manufacturing cost, thus it is included in the cost of a product under absorption costing.

Which of the Following Would Be Included in the Cost