What Is the Difference Between Full Absorption Costing and Variable

question 93

Multiple Choice

What is the difference between full absorption costing and variable costing?

• A)In full absorption costing,all of the non-manufacturing costs are expensed.In variable costing,all of the non-manufacturing expenses are included in the cost of the product.
• B)In full absorption costing,fixed manufacturing overhead is expensed.In variable costing,fixed manufacturing overhead is included in the cost of the product.
• C)In full absorption costing,fixed manufacturing overhead is included in the cost of the product.In variable costing,fixed manufacturing overhead is expensed.
• D)Variable costing must be used for external financial reports while full absorption costing can only be used for internal reporting.

---

Definitions:

Identity

The qualities, beliefs, personality, looks, and expressions that make a person (self-identity) or group (particular social category or social group).

Integrity

The quality of being honest and having strong moral principles, or the state of being whole and undivided.

Basic Trust

An essential belief in the reliability and predictability of the world, typically established in early childhood.

Intimacy

A state of close familiarity or friendship, often referencing emotional closeness in relationships.