Which of the Following Is Considered a Period Cost in Absorption

question 20

Multiple Choice

Which of the following is considered a period cost in absorption costing?

• A) variable manufacturing overhead costs
• B) fixed selling and administrative costs
• C) fixed manufacturing overhead costs
• D) semi-variable manufacturing overhead costs

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Definitions:

Horizontal Analysis

Horizontal analysis is a financial analysis technique that compares historical financial data across different periods, to identify trends and growth patterns by analyzing changes in line items.

Base Year Amount

A reference value of an economic indicator or financial metric used for comparison over time, typically set in a specific starting year.

Horizontal Analysis

A financial analysis technique that compares historical financial information over a series of reporting periods, to observe trends and changes over time.

Financial Statement Data

Information found in financial statements that provides insights into a company's financial condition, including balance sheet, income statement, and cash flow statement data.