Question

Absorption costing is inclusive of

• A. Total cost
• B. Works cost
• C. Variable cost
• D. Fixed cost

Hint:

Absorption costing ensures that all production costs are included in the product cost.

Answer 1

The Correct Option is A

Absorption costing includes all costs associated with production, including both fixed and variable costs, thereby providing a comprehensive cost structure for a product. This method ensures that all production costs are accounted for when determining the cost of a product.