Variable costing is also called direct costing because it considers other nonmanufacturing direct costs, such as direct marketing costs as inventoriable costs.

Question

Quizplus · Accepted Answer

Variable costing is also sometimes called direct costing but that name is misleading as it excludes direct nonmanufacturing costs and only includes variable costs that are part of production and not outside of production in the value chain - as marketing costs would be.

Variable Costing Is Also Called Direct Costing Because It Considers