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What is Absorption Costing?

2. What is Absorption Costing?

  1. Method, where the variable costs are considered as the product cost and the fixed costs, are considered as the costs of the period
  2. The method considers both fixed costs and variable costs as product costs
  3. Difference between selling price & variable cost
  4. Difference between selling price & fixed cost

Answer: B) The method considers both fixed costs and variable costs as product costs

Explanation:

Absorption Costing is a strategy that considers both fixed expenses and variable expenses as item costs. This costing strategy is fundamental, especially for announcing purposes. Revealing reason incorporates both monetary detailing furthermore, charge detailing.

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