Variable costing is also referred to as
A)absorption costing.
B)normal costing.
C)direct costing.
D)full costing.

Question

Quizplus · Accepted Answer

Variable costing is also known as direct costing because it only considers direct costs such as direct materials, direct labor, and variable manufacturing overhead as product costs. It does not allocate any fixed manufacturing overhead to products, unlike absorption costing or full costing. Normal costing is a cost accounting method that uses actual direct costs and predetermined indirect costs, while absorption costing and full costing refer to the same method of allocating all manufacturing costs to products.

Variable Costing Is Also Referred to as