In determining product costs,variable costing and absorption costing differ in the treatment of ________.
A) variable overhead costs
B) variable selling costs
C) fixed selling costs
D) fixed overhead costs

Question

Quizplus · Accepted Answer

Variable costing treats fixed overhead costs as period costs and not as part of the product cost, while absorption costing includes fixed overhead costs in the product cost. Therefore, they differ in the treatment of fixed overhead costs.

In Determining Product Costs,variable Costing and Absorption Costing Differ in the Treatment