Under absorption costing, which of the following costs are applied to manufactured inventory?
A) All fixed costs
B) All variable costs
C) All period costs
D) All manufacturing costs
E) All administrative costs

Question

Quizplus · Accepted Answer

Under absorption costing, all manufacturing costs, both fixed and variable, are applied to manufactured inventory. Period costs and administrative costs are not included in product costs under this method.

Under Absorption Costing, Which of the Following Costs Are Applied