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Which one of the following considers the impact of fixed overhead costs?

A. Full absorption costing.

B, Marginal costing.

C. Direct costing.

D. Variable costing.

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Question added by Hany Sabry , Finance Manager , Coffee Adress
Date Posted: 2015/01/25
Mohammed  Mohammed
by Mohammed Mohammed , Senior SAP Consultant , Abyat Mega Store

Option A is correct 

Hassan Abbas awan
by Hassan Abbas awan , Senior Accountant , Green Valley premium hyper maket

A

Mahd Farooque Dip MA-CIMA Faiyaz Ahmad
by Mahd Farooque Dip MA-CIMA Faiyaz Ahmad , Finance Officer , JS BANK

A= Full absorption takes the effect of all cost to all units

 

Nemani Kumar
by Nemani Kumar , Sr. Management GM Projects , Unitech

A

Ismail Mamoojee
by Ismail Mamoojee , Group Compliance Officer , Liberty

A

Waqas Raza Khan
by Waqas Raza Khan , Accountant , Cold Store Group of Saudi Arabia

Answer: Option A

VENKITARAMAN KRISHNA MOORTHY VRINDAVAN
by VENKITARAMAN KRISHNA MOORTHY VRINDAVAN , Project Execution Manager & Accounts Manager , ALI INTERNATIONAL TRADING EST.

Option ( A )>>>>>> Full absorption costing

imran Noor -
by imran Noor - , Audit Officer , Auditor General of Pakistan

The correct option is (A) >>>>>>>>> Full absorption costing

It considers full cost which includes fixed overhead cost.

Habibullah Syed
by Habibullah Syed , Accountant , Farasia Maritime Agencies Pvt Ltd

OPTION A.................................

Rama Chandran
by Rama Chandran , Regional Manager Sales , JK Tyres and Industries Ltd

Option A :

Absorption costing does not account for all fixed expenses which reflects certain situations in which all the inventory is not sold.

Assets remain part of the entity’s books at the end of the period, absorption costing reflects more fixed costs attributable to those items within ending inventory.

Also, all overheads are abosorbed in each and every itmes