Which of the following terms is commonly used to describe the concept whereby the cost of manufactured products is composed of direct materials cost, direct labor cost, and all factory overhead cost?
A)standard costing
B)variable costing
C)absorption costing
D)marginal costing

Question

Quizplus · Accepted Answer

Absorption costing, also known as full costing, is the accounting method that includes all manufacturing costs - direct materials, direct labor, and both variable and fixed factory overhead - in the cost of a product.

Which of the Following Terms Is Commonly Used to Describe