Net income under absorption costing is gross profit less
A) cost of goods sold.
B) fixed manufacturing overhead and fixed selling and administrative expenses.
C) fixed manufacturing overhead and variable manufacturing overhead.
D) variable selling and administrative expenses and fixed selling and administrative expenses.

Question

Quizplus · Accepted Answer

Net income under absorption costing is calculated by subtracting both variable and fixed selling and administrative expenses from the gross profit.

Net Income Under Absorption Costing Is Gross Profit Less