Asked by Thamizh Ezhilnambi on May 08, 2024
Verified
A cost that would be included in product costs under both absorption costing and variable costing is:
A) supervisory salaries.
B) factory rent.
C) variable manufacturing costs.
D) variable selling expenses.
Absorption Costing
This accounting approach incorporates every manufacturing expense, such as direct materials, direct labor, plus variable and fixed overhead costs, into the product's total cost.
Variable Costing
An accounting method that only includes variable production costs (direct materials, direct labor, and variable manufacturing overhead) in product costs.
Product Costs
The costs directly associated with the creation of a product, encompassing direct materials, direct labor, and manufacturing overhead.
- Identify costs included in product costs under both absorption and variable costing.
Verified Answer
Learning Objectives
- Identify costs included in product costs under both absorption and variable costing.
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