Absorption Costing Income Statements

question 113

Multiple Choice

Absorption costing income statements:

• A)Assign only direct material and direct labour costs to inventory
• B)Allocate fixed production costs to inventory
• C)Treat selling and administrative costs as product costs
• D)Treat costs in a similar manner to variable costing income statements

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Definitions:

Personality

The mix of feelings, attitudes, and behaviors that make up a person's response habits.

Type B Personality

Person who is relaxed and laid back, less driven and competitive than Type A, and slow to anger.

Competitiveness

The inclination to strive for success or superiority in a scenario, often through comparing achievements with oneself or others.

Ambition

A strong desire to achieve success or distinction, often requiring determination and hard work.