Identify the Treatment of Each of the Following Costs Under

question 65

Essay

Identify the treatment of each of the following costs under variable costing and absorption costing.
$$\begin{array} { | l | l | l | l | l | } \hline & { \text { Variable Costing } } &&{ \text { Absorption Costing } } \\\hline & \begin{array} { c } \text { Product } \\\text { Cost }\end{array} & \begin{array} { c } \text { Period } \\\text { Cost }\end{array} & \begin{array} { c } \text { Product } \\\text { Cost }\end{array} & \begin{array} { c } \text { Period } \\\text { Cost }\end{array} \\\hline \text { 1. Direct materials } & & & & \\\hline \text { 2. Direct labor } & & & & \\\hline \text { 3. Variable manufacturing overhead } & & & & \\\hline \text { 4. Fixed manufacturing overhead } & & & & \\\hline \text { 5. Variable selling } & & & & \\\hline \text { 6. Fixed selling } & & & & \\\hline \text { 7. Variable administrative } & & & & \\\hline \text { 8. Fixed administrative } & & & & \\\hline\end{array}$$

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Definitions:

Reparations

Compensation awarded to individuals, groups, or nations for damages or injuries suffered, often as a result of war or oppression.

Germany

A country in Central Europe known for its rich history, cultural heritage, and as a major economic and political power in the European Union.

United States

A federal republic consisting of 50 states and located primarily in North America, known for its diverse culture and significant global influence.

Consumer Credit

Refers to the variety of financial products available to individuals that allow them to purchase goods or services on credit.