Bayt.com

Start networking and exchanging professional insights

Register now or log in to join your professional community.

Follow

Fixed overhead in an absorption cost system is treated as a : a) Period cost b) Product cost c) Variable cost d) Standard cost?

Accounting Cost Accounting
user-image
Question added by Said Shaban , Accountant , Tri State Materials Testing
Date Posted: 2015/07/26
Upvote (0) Views (1) Followers (1) Answers (1) Report Question
Write an Answer
Register now or log in to answer.
Said Shaban
by Said Shaban , Accountant , Tri State Materials Testing

The correct answer is B - Product Cost

* Absorption costing treats all cost of production as product costs. 

* The cost of a unit of product under the absorption costing consists of: 

   Direct materials, Direct labor, and both variable and fixed Manufacturing overhead.

Write Your Answer
More Questions Like This