Which of the following best describes costs assigned to the product under the absorption costing method?
Direct labor (DL)
Direct materials (DM)
Variable selling and administrative (VSA)
Variable manufacturing overhead (VOH)
Fixed selling and administrative (FSA)
Fixed manufacturing overhead (FOH)
A)DL,DM,VSA,and VOH.
B)DL,DM,and VOH.
C)DL,DM,VOH,and FOH.
D)DL and DM.
E)DL,DM,FSA,and FOH.

Question

Which of the following best describes costs assigned to the product under the absorption costing method? 
Direct labor (DL)
Direct materials (DM)
Variable selling and administrative (VSA)
Variable manufacturing overhead (VOH)
Fixed selling and administrative (FSA)
Fixed manufacturing overhead (FOH)
A)DL,DM,VSA,and VOH.
B)DL,DM,and VOH.
C)DL,DM,VOH,and FOH.
D)DL and DM.
E)DL,DM,FSA,and FOH.

Quizplus · Accepted Answer

Absorption costing assigns all variable (direct labor, direct materials, variable overhead) and fixed (fixed overhead) manufacturing costs to the product. Therefore, choice C is the correct answer as it includes all the costs assigned under absorption costing.

Which of the Following Best Describes Costs Assigned to the Product