Which of the following costs would NOT be included in calculating inventory values under the absorption-costing basis?
A)direct materials
B)fixed overhead
C)selling and administrative expenses
D)direct labour

Question

Quizplus · Accepted Answer

Selling and administrative expenses would not be included in calculating inventory values under the absorption-costing basis. Only the costs directly incurred in the production of goods, such as direct materials, direct labor, and fixed overhead, are included in inventory valuation calculations.

Which of the Following Costs Would NOT Be Included in Calculating