Under absorption costing,product costs include direct manufacturing costs and ________.
A)variable selling and administrative expenses
B)indirect manufacturing costsvariable costs only
C)indirect manufacturing costsfixed costs only
D)indirect manufacturing costsvariable and fixed costs

Question

Quizplus · Accepted Answer

Under absorption costing, product costs include direct manufacturing costs as well as indirect manufacturing costs, which can be fixed or variable. This includes expenses such as rent, utilities, and depreciation of equipment used in production.

Under Absorption Costing,product Costs Include Direct Manufacturing Costs and ________