The main difference between Absorption Costing and Marginal Costing is in the way they classify costs between product costs and period costs.

Required

For the costs given below, Indicate whether the cost would be a product cost or a period cost under the costing method indicated.

Marginal Costing

Fixed Administrative Expenses Answer 1Choose...Product Costs/Period Costs

Absorption Costing

Fixed Manufacturing Overhead Answer 1Choose...Product Costs/Period Costs