Which of the following are considered to be product costs under absorption costing?
I.Variable manufacturing overhead.
II.Fixed manufacturing overhead.
III.Selling and administrative expenses.
A) I, II, and III.
B) I and II only.
C) I and III only.
D) I only.

Question

Quizplus · Accepted Answer

Under absorption costing, both variable and fixed manufacturing overhead costs are considered product costs as they are directly related to the production of goods. Selling and administrative expenses are not considered product costs and are therefore not included under absorption costing.

Which of the Following Are Considered to Be Product Costs