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Marginal and Absorption Costing MCQs
What is Absorption Costing?
2. What is Absorption Costing?
- Method, where the variable costs are considered as the product cost and the fixed costs, are considered as the costs of the period
- The method considers both fixed costs and variable costs as product costs
- Difference between selling price & variable cost
- 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.