Accounting · Absorption Costing Concepts
Assertion (A): Under absorption costing, fixed manufacturing overhead forms part of product cost. Reason (R): Absorption costing includes both fixed and variable manufacturing costs in inventory valuation.
Verified Solution4 OptionsUpdated: October 2026👁️1 View
Share:
- 1Both (A) and (R) are correct and (R) is the correct explanation of (A)✓
- 2Both (A) and (R) are correct but (R) is not the correct explanation of (A)
- 3(A) is correct but (R) is not correct
- 4(A) is not correct but (R) is correct
Correct answer
Both (A) and (R) are correct and (R) is the correct explanation of (A)
Download Single Question PDF
Save this question and verified answer as a clean study sheet with live clickable link.
👥
Share with Friends & Study Groups
Challenge your peer aspirants on WhatsApp or Telegram to solve this question!
Online Test Series
Start Free Mock Test →Preparing for Accounting?
Practice full-length mock tests with real exam timers, instant score analysis, and all-India ranking.
Chapter Practice
Practice Absorption Costing Concepts MCQs →Want more practice questions on Absorption Costing Concepts?
Solve complete topic-wise tests with detailed solutions on GkGet.
Related Practice Questions
Recommended practice questions in Accounting · Absorption Costing Concepts