The Primary Difference Between Absorption Costing and Direct Costing Is

question 6

Multiple Choice

The primary difference between absorption costing and direct costing is the treatment of:

• A) direct material costs.
• B) variable manufacturing overhead.
• C) fixed manufacturing overhead.
• D)direct labor costs.

---

Definitions:

Infant

A very young child or baby, often legally defined as a person under a certain age, varying by jurisdiction.

Sue in Tort

Initiating a civil lawsuit based on tort law, seeking remedy for personal injuries or damages caused by wrongful acts.

Necessary

Essential or needed to achieve a desired result or fulfill a specific purpose.

Age of Majority

The legally defined age at which a person is considered an adult and is granted the full legal rights and responsibilities of adulthood.