Absorption costing considers ________ as product costs.
A) variable manufacturing overhead
B) sales salaries and commissions
C) administrative office salaries
D) advertising costs

Question

Quizplus · Accepted Answer

Absorption costing considers all variable and fixed manufacturing overhead costs as product costs, including variable manufacturing overhead. Sales, administrative, and advertising costs are not considered product costs under absorption costing, but rather period costs that are expensed as incurred.

Absorption Costing Considers ________ as Product Costs