Which of the following costs is inventoried when using absorption costing?
A) variable selling costs
B) fixed administrative costs
C) variable manufacturing costs
D) fixed selling costs

Question

Quizplus · Accepted Answer

Absorption costing includes all manufacturing costs, both fixed and variable, in the inventory value. Variable selling costs and fixed selling costs are not included in the inventory value, and fixed administrative costs are considered period costs that are expensed in the period incurred.

Which of the Following Costs Is Inventoried When Using Absorption