The costing approach that charges all manufacturing costs to the product is referred to as
A) variable costing.
B) contribution margin costing.
C) direct costing.
D) absorption costing.

Question

Quizplus · Accepted Answer

Absorption costing charges all manufacturing costs to the product, including direct materials, direct labor, and both variable and fixed manufacturing overhead. The other options (A, B, and C) do not include fixed manufacturing overhead in the cost of the product.

The Costing Approach That Charges All Manufacturing Costs to the Product