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:

Job Analysis

The process of obtaining information about jobs by determining the duties, tasks, or activities of jobs.

Performance Management

The process of creating a work environment in which people can perform to the best of their abilities

Performance Feedback

The process of providing employees with information about their job performance and suggestions for improvement.

Organizational Culture

The values, beliefs, and norms that shape the behavior and practices of members within an organization.