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Isaiah Goolsby
on Nov 13, 2024

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The costing approach that charges all manufacturing costs to the product is referred to as

A) variable costing.
B) contribution margin costing.
C) direct costing.
D) absorption costing.

Manufacturing Costs

Refers to the total expenses incurred in the process of producing a product, including raw materials, labor, and overhead costs.

Variable Costing

An accounting method that only includes variable production costs (direct materials, direct labor, and variable manufacturing overhead) in product costs, treating fixed costs as period expenses.

Absorption Costing

An accounting method that includes all manufacturing costs (direct costs, fixed, and variable overheads) in the cost of a product.

  • Comprehend the distinctions between variable costing and absorption costing.
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aaliyah harveyNov 14, 2024
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