(Choose 1 answer)
What is the cause of the difference between absorption costing net operating income and variable costing net operating income?
A. Absorption costing deducts all manufacturing costs from net operating income; variable costing deducts only prime costs.
B. Absorption costing allocates fixed manufacturing costs between cost of goods sold and inventories;variable costing considers all fixed manufacturing costs to be period costs
C. Absorption costing includes variable manufacturing costs in product costs; variable costing considers variable manufacturing costs to be period costs.
D. Absorption costing includes fixed administrative costs in product costs; variable costing considers fixed administrative costs to be period costs.
Exit 25
