Manufacturing cost per unit will be higher under variable costing than under absorption costing.

Name: Manufacturing cost per unit will be higher under variable costing than under absorption costing.
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Question

Quizplus · Accepted Answer

Manufacturing cost per unit will be lower under variable costing than under absorption costing because variable costing only considers direct materials, direct labor, and variable manufacturing overhead as product costs, while absorption costing includes fixed manufacturing overhead as well.

Manufacturing Cost Per Unit Will Be Higher Under Variable Costing