How Are Costs Classified When Calculating the Absorption-Costing Income for External

Multiple Choice

How are costs classified when calculating the absorption-costing income for external reporting?

A) Manufacturing costs ultimately become nonmanufacturing costs.
B) Manufacturing costs are product costs and product costs are never expensed.
C) Costs of selling manufactured products are classified as product costs.
D) Selling and administrative costs are classified as nonmanufacturing costs.