Question 1
Which of the following costs is inventoried when using absorption costing?
◦ variable selling costs
◦ fixed administrative costs
◦ variable manufacturing costs
◦ fixed selling costs
Question 2
Which of the following costs is inventoried when using variable costing?
◦ rent on factory building
◦ electricity consumed in manufacturing process
◦ sales commission paid on each sale
◦ advertising costs incurred for the product