What costs are treated as product costs under direct costing?
A)Only direct costs
B)Only variable manufacturing costs
C)All variable costs
D)All variable and fixed manufacturing costs

Question

Quizplus · Accepted Answer

Under direct costing, only variable manufacturing costs are treated as product costs. This includes direct materials, direct labor, and variable manufacturing overhead, excluding fixed manufacturing overhead.

What Costs Are Treated as Product Costs Under Direct Costing