The income statement is organized by ________ under absorption costing.
A)period costs only
B)fixed costs only
C)variable costs only
D)product and period costs

Question

Quizplus · Accepted Answer

The income statement under absorption costing is organized by product and period costs. This means that all direct and indirect costs associated with producing a product (product costs) are included in the cost of goods sold and all other costs that are not directly related to production (period costs) are presented separately. Fixed and variable costs are both included in product costs.

The Income Statement Is Organized by ________ Under Absorption Costing