Cost Analysis for Decision-Making
Module 3 • 10 Questions
Question 1 of 10
0 of 10 answered
What is the primary difference in how absorption costing and marginal costing treat fixed manufacturing overhead?
A
Marginal costing includes it in the product cost, while absorption costing expenses it immediately.
B
Both treat it as a period cost.
C
Absorption costing treats it as a product cost (inventories it), while marginal costing treats it as a period cost (expenses it immediately).
D
Neither method includes fixed manufacturing overhead in their calculations.