Under full costing, ending inventory includes both fixed and variable manufacturing and nonmanufacturing costs.

Name: Under full costing, ending inventory includes both fixed and variable manufacturing and nonmanufacturing costs.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Under full costing (also known as absorption costing), ending inventory includes both fixed and variable manufacturing costs, but it does not include nonmanufacturing costs. Nonmanufacturing costs are expensed in the period they are incurred.

Under Full Costing, Ending Inventory Includes Both Fixed and Variable