The choice of the absorption or contribution approach affects the manufacturing cost per unit because the manufacturing cost per unit is _____.
A)higher if the absorption approach is used
B)higher if the contribution approach is used
C)the same regardless of the approach
D)independent of the approach

Question

Quizplus · Accepted Answer

The absorption approach includes both variable and fixed manufacturing costs in the cost per unit, making it higher compared to the contribution approach, which includes only variable costs.

The Choice of the Absorption or Contribution Approach Affects the Manufacturing