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

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Question ajoutée par Said Shaban , Accountant , Tri State Materials Testing
Date de publication: 2015/07/26
Said Shaban
par 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.