Which of the Following Are Considered to Be Product Costs

question 114

Multiple Choice

Which of the following are considered to be product costs under absorption costing?
I.Variable manufacturing overhead.
II) Fixed manufacturing overhead.
III) Selling and administrative expenses.

• A)I,II,and III.
• B)I and II.
• C)I and III.
• D)I.

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Definitions:

Entitlement

A right or benefit that is granted by law, social policy, or other formal means.

Private Goods

Goods that are excludable and rivalrous in consumption, meaning their use by one individual prevents use by another.

Normal Goods

Goods for which demand increases as the income of the buyer increases and decreases as the income of the buyer decreases, showing a positive correlation between income changes and demand.

Overallocation

The process of assigning more resources to a project or sector than is available or sustainable, leading to inefficiencies.