(CMA)Which method of inventory costing treats direct manufacturing costs and manufacturing overhead costs, both variable and fixed, as inventoriable costs?

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Absorption costing treats direct manufacturing costs and all manufacturing overhead costs, both variable and fixed, as inventoriable costs. This means that these costs are included in the cost of goods sold when the products are sold. This method is required for external financial reporting purposes and is also often used for internal management purposes. Direct costing (A) and variable costing (B) are both methods of inventory costing that only treat variable costs as inventoriable costs, while Conversion costing (D) is not a recognized method of inventory costing.

(CMA)Which Method of Inventory Costing Treats Direct Manufacturing Costs and Manufacturing