Cost And Management Accountıng Deneme Sınavı Sorusu #1399099

In which costing method, does product cost cover all direct costs and all indirect costs, irrespective of whether these factors are really used in production at full capacity or not?


Direct Costing Method

Throughput Costing Method

Full Costing Method

Normal Costing Method

Variable Costing Method


Yanıt Açıklaması:

In this method, expenditures for all manufacturing related factors are included in the product cost (Lazol, 2011: 131). Direct materials cost, direct labor cost, and manufacturing overhead costs are all included in the product cost with their total lump sum amount. In other words, product cost covers all direct costs and all indirect costs, irrespective of whether these factors are really used in production at full capacity or not.

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