Knowledge Check 01

All of the following are true about differences between full absorption costing and variable costing except:

Knowledge Check 01 All of the following are true about differences between full absorption costing and variable costing except: Multiple Choice Full absorption costing is required by GAAP and variable costing is only used in internal decision making. Full absorption costing classifies cost as manufacturing and nonmanufacturing and variable costing classifies cost as variable and fixed. Full absorption costing calculates contribution margin and variable costing calculates gross margin. O Full absorption costing divides fixed cost between cost of goods sold and ending Inventory while variable costing expenses fixed costs in the period incurred