Asked by Zeyka Strandzheva on Apr 24, 2024
Verified
What costs are treated as product costs under the absorption costing method?
Absorption Costing
An accounting method that includes all direct costs and overhead costs related to the production of a specific product.
Product Costs
Expenses directly attributable to the creation of a product, including material, labor, and overhead costs.
- Differentiate between costs treated as product costs under absorption and variable costing methods.
Verified Answer
JM
Jolene MaciasMay 02, 2024
Final Answer :
Under absorption costing,direct labor,direct materials,and all manufacturing overhead costs,both fixed and variable,are treated as product costs.
Learning Objectives
- Differentiate between costs treated as product costs under absorption and variable costing methods.