Question

An income statement under absorption costing includes all of the following (You may select more than one answer):

a) fixed factory overhead.
b) direct materials.
c) direct labor.
d) fixed selling expenses.

Answer 1

a) fixed factory overhead.

b) direct materials.

c) direct labor.

d) fixed selling expenses

Step-by-step explanation:

Absorption costing product costs consist of variable and fixed manufacturing overheads. The total of which will appear in the cost of goods sold.

All non manufacturing costs (fixed and variable) are treated a period and are expensed during the period.