Mirabella Company assigns direct materials,direct labor and both variable and fixed overhead to its product costs.Mirabella Company is using
A) absorption costing
B) variable costing
C) batch costing
D) composite costing

Question

Quizplus · Accepted Answer

Mirabella Company assigns both variable and fixed overhead to its product costs, which is a characteristic of absorption costing. In absorption costing, all manufacturing costs, including direct materials, direct labor, and both variable and fixed overhead, are absorbed into the cost of the product. This is in contrast to variable costing, where only variable manufacturing costs are included in the cost of the product. Batch costing and composite costing are not relevant options in this scenario.

Mirabella Company Assigns Direct Materials,direct Labor and Both Variable and Fixed