Which of the following statements is TRUE of absorption and variable costing methods?
A) Both costing methods consider selling and administrative costs to be period costs.
B) Variable costing considers variable selling and administrative costs to be product costs.
C) Absorption costing considers fixed manufacturing overhead to be period costs.
D) Both costing methods consider fixed manufacturing overhead to be product costs.

Question

Quizplus · Accepted Answer

Both absorption and variable costing methods treat selling and administrative costs as period costs, not as part of the cost of the product.

Which of the Following Statements Is TRUE of Absorption and Variable