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.

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