All of the following are inventoried under absorption costing except:
A) direct labor.
B) raw materials used in production.
C) utilities cost consumed in manufacturing.
D) sales commissions.
E) machine lubricant used in production.

Question

Quizplus · Accepted Answer

Under absorption costing, all manufacturing costs are inventoried, including direct materials, direct labor, and both variable and fixed manufacturing overhead. Sales commissions are considered a period cost, not a product cost, and therefore are not inventoried.

All of the Following Are Inventoried Under Absorption Costing Except