Which of the Following Statements Is TRUE of Absorption and Variable

question 172

Multiple Choice

Which of the following statements is TRUE of absorption and variable costing methods?

• A) Both costing methods consider selling and administrative costs to be period costs.
• B) Variable costing considers variable selling and administrative costs to be product costs.
• C) Absorption costing considers fixed manufacturing overhead to be period costs.
• D) Both costing methods consider fixed manufacturing overhead to be product costs.

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