Unit product cost calculations using absorption costing do not include ________.
A) fixed manufacturing overhead
B) variable manufacturing overhead
C) variable selling and administrative costs
D) direct materials

Question

Quizplus · Accepted Answer

Unit product cost calculations under absorption costing include direct materials, direct labor, variable and fixed manufacturing overhead. However, variable selling and administrative costs are not considered part of the cost of producing the product and therefore do not factor into the cost per unit.

Unit Product Cost Calculations Using Absorption Costing Do Not Include