The only difference between variable and absorption costing is the expensing of ________.
A) direct manufacturing costs
B) variable marketing costs
C) fixed manufacturing costs
D) variable administrative costs

Question

Quizplus · Accepted Answer

The only difference between variable and absorption costing is the treatment of fixed manufacturing costs. In variable costing, these costs are expensed as period costs and are not included in the cost of goods sold, while in absorption costing, they are integrated into the cost of goods sold. Therefore, the correct answer is C - fixed manufacturing costs.

The Only Difference Between Variable and Absorption Costing Is the Expensing