169. CSO: 1C1d LOS: 1C1f
Which of the following correctly shows the treatment of (1) factory insurance, (2) direct
labor, and (3) finished goods shipping costs under absorption costing and variable
costing?
Absorption Costing Variable Costing
Product Cost Period Cost Product Cost Period Cost
a. 1, 2 3 2 1, 3.
b. 2 1, 3 1, 2 3.
c. 1, 2 3 1 2, 3.
d. 1 2, 3 2, 3 1.
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