The only difference between absorption costing and variable costing is the treatment of
A)all variable costs.
B)variable overhead costs.
C)all fixed costs.
D)fixed overhead costs.

Question

Quizplus · Accepted Answer

The only difference between absorption costing and variable costing is the treatment of fixed overhead costs. In absorption costing, fixed overhead costs are included in the product cost, while in variable costing, they are treated as period costs and are expensed in the current period. All variable costs are treated the same in both costing methods.

The Only Difference Between Absorption Costing and Variable Costing Is