Which of the following are considered to be product costs under absorption costing:
I.Variable manufacturing overhead.

II.Fixed manufacturing overhead.

III.Selling and administrative expenses.
A)I, II, and III.
B)I and III.
C)I and II.
D)I.

Question

Which of the following are considered to be product costs under absorption costing:
I.Variable manufacturing overhead.

II.Fixed manufacturing overhead.

III.Selling and administrative expenses.
A)I, II, and III.
B)I and III.
C)I and II.
D)I.

Quizplus · Accepted Answer

Product costs under absorption costing include direct materials, direct labor, and manufacturing overhead. Therefore, options I (direct materials), and II (direct labor) are product costs under absorption costing. Option III (manufacturing overhead) is also a product cost under absorption costing. Therefore, the correct answer is choice C (I and II).

Which of the Following Are Considered to Be Product Costs