Absorption costing:

Name: Absorption costing:
Brand: Quizplus
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Question

Absorption costing:

Quizplus · Accepted Answer

Absorption costing includes fixed manufacturing overhead as an inventoriable cost, meaning it is included in the cost of goods sold. Direct manufacturing costs are included in the cost of goods sold under absorption costing, not treated as a period cost. While absorption costing can be used for internal reports, it is not necessarily required exclusively for internal reports. Marketing costs would not typically be included in absorption costing.

Absorption Costing