Which of the Following Relates to Absorption Costing

question 216

Multiple Choice

Which of the following relates to absorption costing?

• A)Treats direct manufacturing costs as a period cost
• B)Includes fixed manufacturing overhead as an inventoriable cost
• C)Expenses marketing costs as cost of goods sold
• D)Is required for internal reports to managers

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Definitions:

Job Performance

The level of effectiveness and efficiency with which an individual or group fulfills their work-related tasks and responsibilities.

Leadership Capacity

The potential or ability for individuals to lead effectively, often developed through experience, training, and personal growth.

Variable Cost

Expenses that change in proportion with the level of production or sales volume, such as raw materials and direct labor costs.

Total Cost

The sum of all expenses incurred in producing a good or service, including both fixed and variable costs.