Question

The only difference between variable and absorption costing is the expensing of ________.A) direct manufacturing costs B) variable marketing costs C) fixed manufacturing costs D) variable administrative costs

Answer 1

The correct answer is C. fixed manufacturing costs

Step-by-step explanation:

We can see that in Absorption costing, all the costs are included and that includes fixed costs. on the other hand, in the variable costing, it is only included the variable costs that are directly incurred in production.