Absorption costing is more appropriate when determining the product costs for long-term planning.

Question

Quizplus · Accepted Answer

Absorption costing takes into account all the manufacturing costs, including fixed and variable, and allocates them to the products. This method is more appropriate for long-term planning as it considers all the costs involved in the production process and provides a more accurate picture of the product's total cost.

Absorption Costing Is More Appropriate When Determining the Product Costs