In ________, fixed manufacturing costs are included as inventoriable costs.
A) variable costing
B) absorption costing
C) throughput costing
D) activity-based costing

Question

Quizplus · Accepted Answer

Absorption costing includes all manufacturing costs, including fixed manufacturing costs, in the cost of goods sold or inventoriable costs. Variable costing only includes variable manufacturing costs, throughput costing only includes direct materials and direct labor costs, and activity-based costing allocates costs based on activities rather than simply categorizing them as fixed or variable.

In ________, Fixed Manufacturing Costs Are Included as Inventoriable Costs