Following are not true in respect of absorption costing:

CS Executive · Corporate and Management Accounting · PYQS · June 2023
Following are not true in respect of absorption costing:
(A) Fixed cost is included in the cost of products
(B) Profitability is measured by profit earned by various products or departments.
(C) Stock values in Absorption costing are, therefore, higher than in Marginal costing
(D) Difference in the valuation of opening and the closing stock does not affect the unit cost of production

Answer & Explanation:

Correct Answer: Option (D)

Official answer key: (D).

Topics: Cost Accounting

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