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.

---

Definitions:

Business Intelligence

The strategies and technologies used by enterprises for the data analysis of business information to support better business decision making.

Data Analytics

The process of examining data sets to draw conclusions about the information they contain, often with the aid of specialized systems and software.

Artificial Intelligence

The simulation of human intelligence processes by machines, especially computer systems, including learning, reasoning, and self-correction.

Data Visualization

The graphical representation of data to help communicate its insights effectively, using visual elements like charts, graphs, and maps.