Under absorption costing, fixed manufacturing overhead

costs:$$

$$

$$A$.$are deferred in inventory when production exceeds sales.$$B$.$are always treated as period costs.$$C$.$are released from inventory when production exceeds sales.$$D$.$are ignored.

Question $19$

The contribution approach to income statement preparation:

a$.$ Organizes costs according to the functions of production, administration, and sales.

b$.$ Organizes costs according to their variable and fixed cost behavior.

c$.$ Is required for external reporting.

d$.$ Is used for external reporting.