New Enroll in RBI Grade B New Batch - Starts on May 21

    Question

    The fixed and variable costs are treated as product cost

    under which of the following costing techniques?
    A Marginal Costing Correct Answer Incorrect Answer
    B Absorption Costing Correct Answer Incorrect Answer
    C Standard Costing Correct Answer Incorrect Answer
    D Budget Costing Correct Answer Incorrect Answer
    E All of the above Correct Answer Incorrect Answer

    Solution

    Absorption costing, also known as “full costing,” is a managerial accounting method for capturing all costs associated with manufacturing a particular product. The fixed and variable costs like direct materials, direct labor, rent, and insurance, are all considered as product costs under this method.

    Practice Next

    Relevant for Exams: