The essential difference between __________ costing and ____________ costing is timing.Select one:a.manufacturing, overheadb.absorption, activity-basedc.variable, absorptiond.fixed, variable
Question
The essential difference between __________ costing and ____________ costing is timing.Select one:a.manufacturing, overheadb.absorption, activity-basedc.variable, absorptiond.fixed, variable
Solution
The essential difference between variable costing and absorption costing is timing. So, the correct answer is c. variable, absorption.
Here's why:
- Variable Costing: This method includes only the variable manufacturing costs when calculating product cost. These variable costs include direct materials, direct labor, and variable manufacturing overhead. It's called variable costing because the
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