Ask Question
BusinessBusiness
12 July, 14:18

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

+5
Answers (1)
  1. 12 July, 14:21
    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 the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
How many District Courts are in the federal court system
Answers (1)
The Browns have a real estate agreement with Sell Fast Real Estate Company. A couple makes a ridiculously low offer on their home, which is five-bedrooms, five-baths in Malibu. The offer is $200,000 less than the Browns' asking price.
Answers (1)
A perpetuity is defined as: Multiple Choice a limited number of equal payments paid in even time increments. unending equal payments paid at equal time intervals. varying amounts that are paid at even intervals forever.
Answers (1)
Operating leverage is easier to control and manage than financial leverage because operating leverage deals with the internal workings of the company while financing deals with outside parties. True or False?
Answers (1)
What is it called when banks record which account gives up money and which account receives money when a customer writes a check? net worth the discount rate the federal funds rate check clearing
Answers (1)
New Questions in Business
2. Let's work out a simple example where a person smooths her consumption over time. Gwen is a real estate agent, and she knows that she will have some good years and some bad years.
Answers (1)
What is the process of an economy's increasing industrialization, standard of living, and economic wealth.
Answers (2)
the context of bringing the code of ethics of a company to life, which of the following statements is true when experts try to advocate a forceful, integrated approach to ethics?
Answers (1)
Privatisation leads to ... A) Lower productivity and lower profit B) Higher productivity and higher profit C) Higher productivity and lower profit D) lower producitivity and lower profit
Answers (1)
As of December 31, 2019, Armani Company's financial records show the following items and amounts. Cash $ 10,000 Accounts receivable 9,000 Supplies 6,000 Equipment 5,000 Accounts payable 11,000 A. Armani, Capital, Dec. 31, 2018 16,000 A.
Answers (1)
Home » Business » 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
Sign Up Forgot Password?