In absorption costing,all manufacturing costs are considered to be
A)Product costs
B)Period costs
C)Variable costs
D)Mixed costs

Question

Quizplus · Accepted Answer

Absorption costing considers manufacturing costs (direct materials, direct labor, and manufacturing overhead) as product costs, which are included in the inventory cost of the product. This means that these costs are only expensed when the product is sold.

In Absorption Costing,all Manufacturing Costs Are Considered to Be