Question

Which of the following product-costing systems is/are required for tax purposes? Either absorption, variable costing, or throughput costing. Throughput costing. Absorption costing. Variable costing. Either absorption or variable costing.

Answer 1

Absorption costing

Step-by-step explanation:

The absorption costing is the costing which includes the direct material cost, direct labor cost, variable cost and the fixed cost

And, the total manufacturing overhead cost is comprise of

Direct material cost + direct labor cost + manufacturing overhead cost

Moreover, this is the only product costing which is held for the tax purpose