Ask Question
3 July, 16:09

LO 6.5Under absorption costing, a unit of product includes which costs?

direct material, direct labor, and manufacturing overhead

direct material, direct labor, and variable manufacturing overhead

direct material, direct labor, and fixed manufacturing overhead

direct material, direct labor, and all variable manufacturing overhead

+2
Answers (1)
  1. 3 July, 18:54
    0
    Answer: direct material, direct labor, and fixed manufacturing overhead

    Explanation: In calculating product cost in a manufacturing environment, there are two types of costing namely the variable costing method and absorption costing method.

    Under absorption costing, a unit of product includes direct materials, direct labour, variable overheads and all fixed manufacturing overhead.

    under this method, all variable cost as well as fixed cost are all included in the cost of a product.

    Absorption costing is required by GAAP and so has to be using in preparing the financial accounts.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “LO 6.5Under absorption costing, a unit of product includes which costs? direct material, direct labor, and manufacturing overhead direct ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers