How Are Costs Classified When Calculating the Absorption-Costing Income for External

question 220

Multiple Choice

How are costs classified when calculating the absorption-costing income for external reporting?

• A)Manufacturing costs ultimately become nonmanufacturing costs.
• B)Manufacturing costs are product costs and product costs are never expensed.
• C)Costs of selling manufactured products are classified as product costs.
• D)Selling and administrative costs are classified as nonmanufacturing costs.