Which one of the following considers the impact of fixed overhead costs?

Option A is correct 

A

A= Full absorption takes the effect of all cost to all units

A

A

Answer: Option A

Option ( A )>>>>>> Full absorption costing

The correct option is (A) >>>>>>>>> Full absorption costing

It considers full cost which includes fixed overhead cost.

A

OPTION A.................................

Option A :

Absorption costing does not account for all fixed expenses which reflects certain situations in which all the inventory is not sold.

Assets remain part of the entity’s books at the end of the period, absorption costing reflects more fixed costs attributable to those items within ending inventory.

Also, all overheads are abosorbed in each and every itmes