Answer the Following Absorption Costing Questions

question 49

Essay

Answer the following absorption costing questions:
$$\begin{array} { | l | l | } \hline \text { Question } & \text { Absorption Costing } \\\hline \begin{array} { l } \text { Which costs are included as } \\\text { product costs? }\end{array} & \\\hline \begin{array} { l } \text { Which costs are included as } \\\text { period costs? }\end{array} & \\\hline\end{array}$$

---

Definitions:

GAAP

Generally Accepted Accounting Principles; a collection of standardized guidelines and practices for financial accounting used in a particular jurisdiction.

Historical Cost

The original monetary value of an asset or investment at the time of its acquisition.

Market Value

The current price at which an asset or service can be bought or sold in a vibrant market.