What factor is the cause of the difference between

What factor is the cause of the difference between profit as computed under absorption costing
and profit as computed under variable costing?
Select one:
a. Absorption costing considers all manufacturing costs in the determination of profit whereas
variable costing considers only prime costs.
b. Absorption costing allocates fixed manufacturing costs between cost of goods sold and
inventories, and variable costing considers all fixed a manufacturing costs as period costs.

c. Absorption costing includes all variable manufacturing cost in product costs, but variable
costing considers variable manufacturing costs to be period costs.
d. Absorption costing includes all fixed manufacturing costs in product costs, but variable
costing expenses all fixed manufacturing costs.
Last year, Silver Company’s variable production costs totaled P7,500 and its fixed manufacturing
overhead costs totaled P4,500. The company produced 3,000 units during the year and sold
2,400 u nits. There were no units in the beginning inventory. Which of the following statements
is true?
Select one:
A cost that would be included in product costs under both absorption costing and variable
costing would be:
Select one:
The first step involved in preparing a master budget is
Select one: