Which of the following items are included in the cost base under the absorption costing approach to cost-plus pricing?
$\begin{array}{|l|l|l|l|l|}
\hline & {\text { Variable Cost }} &&{\text { Fixed Cost }} \
\hline & \text { Production } & \text { Selling } & \text { Production } & \text { Selling } \
\hline \text { A) } & \text { Yes } & \text { Yes } & \text { Yes } & \text { No } \
\hline \text { B) } & \text { No } & \text { Yes } & \text { No } & \text { Yes } \
\hline \text { C) } & \text { Yes } & \text { Yes } & \text { No } & \text { No } \
\hline \text { D) } & \text { Yes } & \text { No } & \text { Yes } & \text { No } \
\hline
\end{array}$
A) Option A
B) Option B
C) Option C
D) Option D

Question

Quizplus · Accepted Answer

Absorption costing includes all production costs, both variable and fixed, in the cost base. Selling costs, whether variable or fixed, are not included in the cost base under this approach.

Which of the Following Items Are Included in the Cost