Which of the following costs would NOT be included in calculating inventory values under the absorption-costing basis?
A)direct materials
B)fixed overhead
C)selling and administrative expenses
D)direct labor

Question

Quizplus · Accepted Answer

Selling and administrative expenses are not included in the calculation of inventory values under the absorption-costing basis. Only production costs, such as direct materials, direct labor, and variable and fixed overheads, are included in the calculation. Selling and administrative expenses are considered period costs and are expensed in the period incurred.

Which of the Following Costs Would NOT Be Included in Calculating