During its first year of operations, Kima Ltd. experienced the following: The amount of fixed costs deducted from revenues under the absorption costing approach would be
A) $410,000
B) $455,000
C) $390,000
D) $435,000

Question

Quizplus · Accepted Answer

Under absorption costing, fixed manufacturing overhead is included in the cost of goods sold and ending inventory. The amount of fixed costs deducted from revenues would be the total fixed manufacturing overhead, which is $410,000.

During Its First Year of Operations, Kima Ltd