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When Calculating the Absorption-Costing Income for External Reporting, All

Question 125

Multiple Choice

When calculating the absorption-costing income for external reporting, all


A) manufacturing costs ultimately become nonmanufacturing costs.
B) manufacturing costs are product costs and product costs are never expensed.
C) costs of selling manufactured products are classified as product costs.
D) selling and administrative costs are classified as nonmanufacturing costs.

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