Match the type of income statement to the costs it includes.
-Fixed selling expense
A)Variable costing income statement
B)Absorption costing income statement
C)Both types of income statements

Question

Quizplus · Accepted Answer

Fixed selling expenses are included in both variable costing and absorption costing income statements. In variable costing, these expenses are treated as period costs and expensed in the period incurred. In absorption costing, they are part of the operating expenses and deducted from the gross margin to determine net income.

Match the Type of Income Statement to the Costs It