Under absorption costing,which of the following is not considered a product cost?
A) Direct labour
B) Fixed manufacturing overhead
C) Variable manufacturing overhead
D) Administrative costs

Question

Quizplus · Accepted Answer

Under absorption costing, administrative costs are not considered a product cost as they are not directly related to the production of a specific product. Direct labour, fixed manufacturing overhead, and variable manufacturing overhead are all considered product costs because they are directly incurred in the production of goods.

Under Absorption Costing,which of the Following Is Not Considered a Product