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Questions and Answers
Which costing method treats the costs of all manufacturing components as inventoriable or product costs?
Which costing method treats the costs of all manufacturing components as inventoriable or product costs?
- Marginal costing
- Absorption costing (correct)
- Direct costing
- Variable costing
Under absorption costing, where are the costs of nonmanufacturing areas of the organization considered?
Under absorption costing, where are the costs of nonmanufacturing areas of the organization considered?
- Inventoriable costs
- Administrative expenses
- Period costs (correct)
- Product costs
How does absorption costing present expenses on an income statement?
How does absorption costing present expenses on an income statement?
- According to their functional classifications (correct)
- As separate fixed and variable costs
- Based on their variability
- By their contribution margins
