_____ assigns both fixed and variable manufacturing costs to the product.
A)Direct costing
B)Variable costing
C)Absorption costing
D)Fixed costing

Question

Quizplus · Accepted Answer

Absorption costing assigns both fixed and variable manufacturing costs to the product and is required by generally accepted accounting principles (GAAP). In absorption costing, fixed manufacturing costs are absorbed into the cost of each unit produced, while in variable costing only variable manufacturing costs are assigned to the product. Direct costing and fixed costing are not commonly used methods of costing.

_____ Assigns Both Fixed and Variable Manufacturing Costs to the Product