Under absorption costing, product costs include:
A)Option A
B)Option B
C)Option C
D)Option D

Question

Under absorption costing, product costs include: 
A)Option A 
B)Option B 
C)Option C 
D)Option D

Quizplus · Accepted Answer

Under absorption costing, product costs include direct materials, direct labor, and both fixed and variable manufacturing overhead. Option A is the only choice that includes all of these elements. Option B only includes direct materials and direct labor, while Option C only includes direct materials, direct labor, and fixed manufacturing overhead. Option D only includes direct materials and direct labor, as well as variable overhead, but does not include fixed manufacturing overhead. Therefore, Option A is the best choice as it includes all of the costs that are included under absorption costing.

Under Absorption Costing, Product Costs Include