Question

An income statement under absorption costing includes all of the following: (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.) check all that apply Direct materialsunanswered Direct laborunanswered Variable overheadunanswered Fixed overhead

Answer 1

Answer:

An income statement under absorption costing includes all of the following:

Direct materials

Direct labor

Variable overhead

Fixed overhead

Explanation:

The difference between the income statement under the absorption costing system and the income statement under the variable costing system is in how the cost of goods sold and the ending inventory are evaluated.  Whereas, absorption costing includes all the costs incurred in determining these costs, variable costing only includes the variable costs in the cost of goods sold and the ending inventory.