ECONOMICS

Detailed explanation-1: -In absorption costing, both direct and indirect costs are included in the cost of a product. This means that the cost of each unit of a product includes not only the direct costs of producing that unit, but also a portion of the indirect costs that were incurred in the production process.

Detailed explanation-2: -Which method of inventory costing treats direct manufacturing costs and manufacturing overhead costs, both variable and fixed, as inventoriable costs? Absorption costing.

Detailed explanation-3: -method of inventory costing in which all variable manufacturing costs and all fixed manufacturing costs are included as inventoriable costs. also referred to as super-variable costing, is an extreme form of variable costing in which only direct material costs are included as inventoriable costs.

Detailed explanation-4: -Variable costing is a methodology that only assigns variable costs to inventory. This approach means that all overhead costs are charged to expense in the period incurred, while direct materials and variable overhead costs are assigned to inventory.