A reliable cost accounting system is necessary for accurate pricing. The traditional method of product costing, where the costs of direct materials, direct labor, and factory overhead are included in a finished product's total cost is called ________.
A)absorption costing
B)break-even pricing
C)direct costing
D)absorption pricing

Question

Quizplus · Accepted Answer

The traditional method of product costing, where the costs of direct materials, direct labor, and factory overhead are included in a finished product's total cost is called absorption costing.

A Reliable Cost Accounting System Is Necessary for Accurate Pricing