The costing method in which fixed factory overheads are added to inventory is known as —

CS Executive · Cost and Management Accounting · PYQS · December 2014
The costing method in which fixed factory overheads are added to inventory is known as —
(A) Direct costing
(B) Marginal costing
(C) Absorption costing
(D) Activity based costing.

Answer & Explanation:

Correct Answer: Option (C)

Correct answer: (C) Absorption costing.

Topics: Costing Methods

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