Start networking and exchanging professional insights

Register now or log in to join your professional community.

Follow

Which method treat direct manufacture cost and manufacture overhead cost ,, both fixed and variable as inventoriable cost ??

A- direct costing 

B - variable costing 

C- absorption costing

D- conversion costing  

user-image
Question added by Ahmed kandil , Cost Controller , Battour Holding Cpompany
Date Posted: 2015/03/10
VENKITARAMAN KRISHNA MOORTHY VRINDAVAN
by VENKITARAMAN KRISHNA MOORTHY VRINDAVAN , Project Execution Manager & Accounts Manager , ALI INTERNATIONAL TRADING EST.

Under variable costing, only variable costs (direct materials, direct labor, and variable overhead) are considered product costs.

Under an absorption costing system, inventoriable (product) costs include all costs necessary for good production. These include direct materials and conversion costs (direct labor and overhead). Both fixed and variable overhead is included in inventory under an absorption costing system. Inventoriable costs are treated as assets until the products are sold because they represent future economic benefits.

 

Answer would be: Absorption costing.

Muhammad Asif
by Muhammad Asif , Accountant , Prestige Plastics LLC

variable costing is the correct answer

FITAH MOHAMED
by FITAH MOHAMED , Financial Manager , FUEL AND ENERGY CO for transportion petroleum materials

C- >>>>>>>>>>>>>>>>>absorption costing

Anas  Dawah
by Anas Dawah , Senior Internal Auditor , Talal Abu-Ghazaleh Global (TAGI)

C-

Absorption costing treat d.m , D.L , FO.H , V.O.H as product cost

Hafiz Umar Farooq
by Hafiz Umar Farooq , Assistant Manager Finance , Hydroturf International FZCO

its absorption costing so answer c is the right one.

manaf almas
by manaf almas , Auditor , DAR AL NUZUM PUBLIC ACCOUNTANTS

C)   ABSORPTION COSTING IS CORRECT ANSWER

Suhaib Abbadi
by Suhaib Abbadi , Assurance and Audit Trainee , EY

C- absorption costing .....................

PRADEEP VELAYUDHAN
by PRADEEP VELAYUDHAN , Chief Accountant , Super Group

c) absorption costing --------------------------------------------------------------

Hossam Mohamed
by Hossam Mohamed , Senior Accountant , Allied Arab Assurance Brokerage

the correct answer is absorption costing(full costing).

Ahmed kandil
by Ahmed kandil , Cost Controller , Battour Holding Cpompany

Answer C is the correct answer

More Questions Like This

Do you need help in adding the right keywords to your CV? Let our CV writing experts help you.