What is the difference between full absorption costing and variable costing? A. In full absorption costing, all
Question:
What is the difference between full absorption costing and variable costing?
A. In full absorption costing, all of the non-manufacturing costs are expensed. In variable costing, all of the non-manufacturing expenses are included in the cost of the product.
B. In full absorption costing, fixed manufacturing overhead is expensed. In variable costing, fixed manufacturing overhead is included in the cost of the product.
C. In full absorption costing, fixed manufacturing overhead is included in the cost of the product. In variable costing, fixed manufacturing overhead is expensed.
D. Variable costing must be used for external financial reports while full absorption costing can only be used for internal reporting.
Accounting for Decision Making and Control
ISBN: 978-0078025747
8th edition
Authors: Jerold Zimmerman