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:

Genetic

Relating to genes or heredity, the study of how traits are passed from parents to offspring through DNA.

Unconscious Processes

Mental processes that occur without conscious awareness, influencing thoughts, feelings, and behaviors.

Belongingness Need

A fundamental human motivation to be an accepted member of a group, whether it's friends, family, or within a larger community.

Ventromedial Nucleus

A region of the hypothalamus involved in regulating hunger and satiety, playing a crucial role in energy homeostasis and metabolism.