Under variable costing,which of the following is not considered a product cost?
A) Direct materials
B) Direct labour
C) Fixed manufacturing overhead
D) Variable manufacturing overhead

Question

Quizplus · Accepted Answer

Under variable costing, fixed manufacturing overhead is treated as a period cost and is not considered a product cost because it varies with production volume. Instead, variable manufacturing overhead costs are considered a product cost under variable costing.  Direct materials and direct labor are considered product costs because they are directly related to the production of the product.

Under Variable Costing,which of the Following Is Not Considered a Product