Question: Absorption costing involves allocating both variable and fixed manufacturing costs to each unit of produced goods. Which of the following statements accurately describes the treatment
Absorption costing involves allocating both variable and fixed manufacturing costs to each unit of produced goods. Which of the following statements accurately describes the treatment of fixed manufacturing costs in absorption costing?
a) Fixed manufacturing costs are expensed in the period incurred. b) Fixed manufacturing costs are capitalized as part of the product cost. c) Fixed manufacturing costs are excluded from the total product cost. d) Fixed manufacturing costs are only allocated to finished goods inventory.
please don't give wrong Answer..
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