All of the following costs are inventoried under absorption costing except:
A)direct materials.
B)direct labour.
C)variable manufacturing overhead.
D)fixed manufacturing overhead.
E)fixed administrative salaries.

Question

Quizplus · Accepted Answer

Fixed administrative salaries are not inventoried under absorption costing as they are considered period costs and are expensed in the period in which they are incurred. The other options (direct materials, direct labour, variable manufacturing overhead, and fixed manufacturing overhead) are all inventoried under absorption costing as they are considered product costs and are included in the cost of goods sold when the products are sold.

All of the Following Costs Are Inventoried Under Absorption Costing