Under the absorption-cost approach, all of the following are included in the cost base except
a) direct materials.
b) fixed manufacturing overhead.
c) selling and administrative costs.
d) variable manufacturing overhead.
Answer: c) selling and administrative costs.
Business
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A) Has a number of low-cost experimental prototypes. B) Devotes significant resources to hit product "home runs." C) Aims to take the marketplace by storm regardless of future trends. D) Represents narrowly concentrated efforts.
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