According to the rules of financial reporting (GAAP),which costs are assigned to products?

Question

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According to GAAP, direct costs (such as direct materials and direct labor) as well as a fair share of indirect manufacturing costs (such as overhead expenses) are assigned to products. This is known as absorption costing, and is required for external financial reporting purposes. Option A is incorrect because it only includes direct materials and direct labor costs, and option B is incorrect because it excludes indirect manufacturing costs. Option D is incorrect because assigning all indirect manufacturing costs to products could result in overstating the cost of goods sold and potentially misleading financial statements.

According to the Rules of Financial Reporting (GAAP),which Costs Are