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Which of these is TRUE about variable costing versus absorption costing?
Under absorption costing, total product costs consist of direct materials, direct labor, and variable manufacturing overhead.
Under absorption costing, non-product costs are added to the cost of inventory produced.
The costs assigned to units in inventory are lower or the same under variable costing than under absorption costing.
Conversion costs (labor and manufacturing overhead) are considered to be product costs under absorption costing but not variable costing.