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

Question

Quizplus · Accepted Answer

Absorption costing is the only costing method that charges all manufacturing costs to its products, including direct material, direct labour, and both fixed and variable manufacturing overheads. Direct costing and variable costing only allocate variable manufacturing costs to products, while ABC costing includes both variable and fixed costs but does not necessarily charge all costs to products.

Which of the Following Costing Methods Charges All Manufacturing Costs