ACCAPerformance Management

Under absorption costing, fixed production overheads are:

ATreated as period costs
BAbsorbed into product cost (so inventory carries part)CORRECT
CAlways written off
DIgnored
AI
Toaster Teacher
Why the answer is B, and why the others tempt you.
Absorption costing absorbs fixed production overheads into product cost; marginal costing treats them as period costs.
Want this in Pidgin, Yoruba, Igbo or Hausa? Sign up free →

Practice more Performance Management questions

ACCA Performance Management has thousands more questions like this — with Worked answers on every one.