In absorption costing,production volume does NOT affect the ________.
A) amount of fixed overhead costs applied to products
B) amount of variable overhead costs applied to products
C) budgeted amount of fixed overhead costs
D) amount of direct materials costs applied to products

Question

Quizplus · Accepted Answer

In absorption costing, the budgeted amount of fixed overhead costs is predetermined and does not change with the volume of production. It is based on the budgeted level of activity for the period, not the actual production volume.

In Absorption Costing,production Volume Does NOT Affect the ________