Which Statement Is Correct About Absorption Costing

Multiple Choice

Which statement is correct about absorption costing?

A) Under this method, fixed overhead is considered a product cost because production cannot take place without these costs.
B) Under this method, fixed overhead is considered a period cost because such costs do not vary according to production level.
C) Under this method, variable overhead is considered a period cost because such costs do not vary according to production level.
D) Under this method, selling costs are considered a product cost because such costs do not vary according to production level.