Which Statement Is Correct About Absorption Costing

question 73

Multiple Choice

Which statement is correct about absorption costing?

• A)Under this method, fixed overhead is considered a product cost because production cannot take place without these costs.
• B)Under this method, fixed overhead is considered a period cost because such costs do not vary according to production level.
• C)Under this method, variable overhead is considered a period cost because such costs do not vary according to production level.
• D)Under this method, selling costs are considered a product cost because such costs do not vary according to production level.

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