The term full cost refers to the cost of manufacturing and selling a unit of product and includes both fixed and variable costs.We need to distinguish between full cost (which includes selling costs)and full absorption cost (which does not include selling costs. )

Question

Quizplus · Accepted Answer

Full cost includes both variable and fixed costs, as well as selling costs. Full absorption cost only includes variable and fixed costs, excluding selling costs.

The Term Full Cost Refers to the Cost of Manufacturing