Which of the Following Would Be Included in the Cost

question 83

Multiple Choice

Which of the following would be included in the cost of a product manufactured according to absorption costing?

• A)advertising expense
• B)sales salaries
• C)depreciation expense on factory building
• D)office supplies costs

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Definitions:

Demand Matches Capacity

A situation in which the demand for a product or service equals the supplier's capacity to produce or provide it, leading to optimal operational efficiency and customer satisfaction.

Service Organizations

Businesses that provide intangible products or services to customers instead of selling physical goods.

Availability

The state of being easily obtainable or accessible, often used in reference to goods, services, or information.

Marginal Costs

The cost of producing one additional unit of a product or service, often used in economic and financial analysis to determine optimal production levels.