The Principal Difference Between Variable Costing and Absorption Costing Centers

question 148

Multiple Choice

The principal difference between variable costing and absorption costing centers on:

• A)whether variable manufacturing costs should be included in product costs.
• B)whether fixed manufacturing costs should be included in product costs.
• C)whether fixed manufacturing costs and fixed selling and administrative costs should be included in product costs.
• D)whether selling and administrative costs should be included in product costs.

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