What factor, related to manufacturing costs, causes the difference in net earnings computed using absorption costing and net earnings computed under variable costing? a. Absorption costing considers all costs in the determination of net earnings, whereas variable costing considers only direct costs. b. Absorption costing allocates fixed costs between cost of goods sold and inventories, and variable costing considers all costs to be period costs. c. Absorption costing" inventories" all fixed costs for the period in ending finished goods inventory, but variable costing expenses all fixed costs. d. Absorption costing "inventories" all direct costs, but variable costing considers direct costs to be period costs.
What factor, related to
using absorption costing and net earnings computed under variable costing?
a. Absorption costing considers all costs in the determination of net earnings, whereas
variable costing considers only direct costs.
b. Absorption costing allocates fixed costs between cost of goods sold and inventories, and
variable costing considers all costs to be period costs.
c. Absorption costing" inventories" all fixed costs for the period in ending finished goods
inventory, but variable costing expenses all fixed costs.
d. Absorption costing "inventories" all direct costs, but variable costing considers direct
costs to be period costs.
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