Overview of Absorption and Variable Costing
3 Questions
3.5 Stars

Overview of Absorption and Variable Costing

This quiz provides an overview of absorption costing, which treats all manufacturing costs as inventoriable or product costs, while considering nonmanufacturing costs as period costs. It also covers the presentation of expenses on an income statement based on functional classifications.

Created by

Questions and Answers

Which costing method treats the costs of all manufacturing components as inventoriable or product costs?

Absorption costing

Under absorption costing, where are the costs of nonmanufacturing areas of the organization considered?

Period costs

How does absorption costing present expenses on an income statement?

According to their functional classifications

Use Quizgecko on...