Which of the Following Statements Is TRUE of Absorption Costing

question 160

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:

Unemployment Rate

The percentage of workers who are jobless and actively seeking positions.

Economic Indicators

Statistics about economic activities that allow analysis of economic performance and predictions of future performance.

Structural Unemployment

A type of unemployment that results from industrial reorganization, typically due to technological change, rather than fluctuations in supply or demand.

Skills Mismatch

A discrepancy between the skills offered by labor market participants and the skills demanded by employers.