Which of the following cost(s)are inventoried when using absorption costing?
A)fixed manufacturing costs
B)variable marketing costs
C)direct manufacturing costs
D)Both A and C are correct.

Question

Quizplus · Accepted Answer

Absorption costing includes all manufacturing costs, both fixed and variable, in the cost of inventory. Direct costs, such as direct materials and direct labor, are also included in inventory under absorption costing. However, variable marketing costs are treated as period expenses and are not included in the cost of inventory.

Which of the Following Cost(s)are Inventoried When Using Absorption Costing