Which of the Following Statements Is False Regarding Absorption Costing

question 8

Multiple Choice

Which of the following statements is false regarding absorption costing?

• A) Variable overhead is treated as a product cost.
• B) Absorption costing is required for external financial statements prepared in accordance with generally accepted accounting principles (GAAP).
• C) Fixed overhead is treated as a product cost.
• D) Fixed overhead is expensed in the period incurred.

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