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The difference between absorption manufacturing cost and total cost with respect

ID: 2515633 • Letter: T

Question

The difference between absorption manufacturing cost and total cost with respect to product pricing is caused by:

variable selling and administrative cost.

variable manufacturing cost.

allocated fixed selling and administrative cost.

applied fixed manufacturing cost.

both variable selling and administrative cost and allocated fixed selling and administrative cost.

variable selling and administrative cost.

variable manufacturing cost.

allocated fixed selling and administrative cost.

applied fixed manufacturing cost.

both variable selling and administrative cost and allocated fixed selling and administrative cost.

Explanation / Answer

The difference between absorption manufacturing cost and total cost with respect to product pricing is caused by:

both variable selling and administrative cost and allocated fixed selling and administrative cost.

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