When a company assigns the costs of direct materials, direct labor, and both variable and fixed manufacturing overhead to products, that company is using
A) operations costing.
B) absorption costing.
C) variable costing.
D) product costing.

Question

Quizplus · Accepted Answer

Absorption costing assigns all manufacturing costs, both variable and fixed, to products. This includes direct materials, direct labor, variable manufacturing overhead, and fixed manufacturing overhead.

When a Company Assigns the Costs of Direct Materials, Direct