Which of the following best describes costs assigned to the product under the absorption costing method?
Direct labor (DL)
Direct materials (DM)
Variable selling and administrative (VSA)
Variable manufacturing overhead (VOH)
Fixed selling and administrative (FSA)
Fixed manufacturing overhead (FOH)

A) DL,DM,VSA,and VOH.
B) DL,DM,and VOH.
C) DL,DM,VOH,and FOH.
D) DL and DM.
E) DL,DM,FSA,and FOH.

Absorption Costing

A bookkeeping system that integrates all costs, both direct and indirect, associated with the production of a product into its final cost.

Direct Labor

The wages and salaries paid to employees who are directly involved in the production of goods or the provision of services.

Manufacturing Overhead

Costs in the production process that are not directly tied to a specific product, such as factory utilities or salaries of supervisors.