The cost accumulation method required by generally accepted accounting principles is referred to as
A)Full costing
B)Absorption
C)Either full costing or absorption
D)Neither full costing nor absorption

Question

Quizplus · Accepted Answer

Generally accepted accounting principles require either full costing or absorption costing for cost accumulation. Both methods include all manufacturing costs in the cost of the product, including direct materials, direct labor, and both fixed and variable manufacturing overhead.

The Cost Accumulation Method Required by Generally Accepted Accounting Principles