Absorption costing assigns ________ to the product.
A)variable manufacturing costs only
B)fixed manufacturing costs only
C)variable manufacturing costs and variable selling costs
D)variable and fixed manufacturing costs

Question

Quizplus · Accepted Answer

Absorption costing assigns both variable and fixed manufacturing costs to the product. It includes direct materials, direct labor, variable manufacturing overhead, and fixed manufacturing overhead. It is called absorption costing because all of the manufacturing costs are absorbed by the products.

Absorption Costing Assigns ________ to the Product