Accounting 9706 · AS & A Level · Traditional costing methods

Traditional costing methods — practice question

A business has the following costs. 1 direct material and direct labour costs 2 indirect factory production overheads 3 administrative expenses 4 distribution costs When absorption costing is used, which of these costs are included in the cost per unit?

  • A1, 2, 3 and 4
  • B1 and 2 only
  • C1 only
  • D2, 3 and 4 only

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