Asked by Bryce Bloomquist on Jun 22, 2024
Verified
Which of the following costing methods charges all manufacturing costs to its products?
A) Direct costing
B) ABC costing
C) Variable costing
D) Absorption costing
E) Period costing
Manufacturing Costs
The total costs incurred in the process of producing or manufacturing goods.
Absorption Costing
An accounting approach that factors in every manufacturing expense, like direct materials, direct labor, and both types of overhead (variable and fixed), into the product pricing.
- Perceive the essential variances between absorption costing and variable costing techniques.
Verified Answer
MM
meredith mckeanJun 26, 2024
Final Answer :
D
Explanation :
Absorption costing charges all manufacturing costs, including direct materials, direct labor, and both variable and fixed manufacturing overhead, to its products. This method is also required by GAAP for external reporting purposes.
Learning Objectives
- Perceive the essential variances between absorption costing and variable costing techniques.
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