Direct material and direct labor costs are assigned to inventory when using I. Absorption costing
II. Throughput costing
III. Variable costing
A) I and III only
B) I and II only
C) II and III only
D) I, II, and III

Question

Quizplus · Accepted Answer

Absorption costing and variable costing both assign direct material and direct labor costs to inventory. Throughput costing, however, only assigns direct material costs to inventory.

Direct Material and Direct Labor Costs Are Assigned to Inventory