When all fixed manufacturing costs and variable manufacturing costs are included as inventoriable costs, the method being used is
A)absorption costing.
B)fixed overhead costing.
C)manufacturing overhead costing.
D)variable costing.
E)direct costing.

Question

Quizplus · Accepted Answer

Absorption costing includes all fixed manufacturing costs and variable manufacturing costs as inventoriable costs, which means that they are included in the cost of goods sold when the inventory is sold. This method is also known as full costing or traditional costing.

When All Fixed Manufacturing Costs and Variable Manufacturing Costs Are