Asked by Chynna Hughes on May 13, 2024

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Using absorption costing,which of the following manufacturing costs are assigned to products?

A) Direct materials and direct labor.
B) Direct labor and variable manufacturing overhead.
C) Fixed manufacturing overhead,direct materials,and direct labor.
D) Variable manufacturing overhead,direct materials,and direct labor.
E) Variable manufacturing overhead,direct materials,direct labor,and fixed manufacturing overhead.

Absorption Costing

A financial recording technique that incorporates all production-related charges, including direct materials, direct labor, along with both changeable and steady overhead expenses, into the product's cost.

Manufacturing Costs

Expenses directly related to the production of goods, including materials, labor, and overhead costs.

Direct Materials

Raw materials that are directly traceable to the manufacturing of a product and are a part of the finished product.

  • Ascertain the components of product costs within each of the two costing methodologies.
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TH
Tanner HodgesMay 16, 2024
Final Answer :
E
Explanation :
Absorption costing assigns all direct materials, direct labor, variable manufacturing overhead, and fixed manufacturing overhead costs to products.