Which of the Following Statements Is True of Absorption Costing

question 138

Multiple Choice

Which of the following statements is true of absorption costing?

• A) It considers variable selling and administrative costs as product costs.
• B) It considers fixed selling and administrative costs as product costs.
• C) It considers fixed manufacturing overhead cost as product costs.
• D) It considers variable manufacturing overhead cost as period costs.

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Definitions:

Industrial/Organizational Psychologist

A professional who applies psychological theories, principles, and research methods to understand workplace behavior, enhance employee well-being, and improve organizational performance.

Medical Doctor

A trained professional who practices medicine, which involves promoting, maintaining, or restoring health through the study, diagnosis, prognosis, and treatment of disease, injury, and other physical and mental impairments.

Clinical Psychologist

A professional specializing in diagnosing, treating, and preventing mental, emotional, and behavioral disorders through various forms of therapy.

Psychiatrist

A medical doctor specializing in the diagnosis, treatment, and prevention of mental health and emotional disorders, capable of prescribing medication.