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what factor related to manufacturing costs causes the difference in net earnings computed using absorption costing...

what factor related to manufacturing costs causes the difference in net earnings computed using absorption costing and net earnings computed using direct costing?

-Absorption costing "inventories" all fixed costs for the period

-Direct costing considers all fixed costs to be period costs

-direct costing considers only direct costs in the determination of net earnings

-direct costing considers direct costs to be period costs

-none of these

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Answer #1

Answer- The factor related to manufacturing costs causes the difference in net earnings computed using absorption costing and net earnings computed using direct costing = None of these.

Explanation- The factor related to manufacturing costs causes the difference in net earnings computed using absorption costing and net earnings computed using direct costing = Absorption costing allocates fixed overhead costs between cost of goods sold and inventories, and variable costing considers all fixed costs to be period costs.

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