In variable costing
A) Only variable production costs are considered product costs
B) All non-variable production costs are treated as product costs
C) Direct costs are considered to be period costs
D) All variable costs are considered product costs

Question

Quizplus · Accepted Answer

In variable costing, only variable production costs are considered product costs. This means that non-variable costs, such as fixed overhead costs, are considered period costs and are expensed in the period they are incurred. Direct costs, such as direct materials and direct labor, are still considered product costs and are included in the cost of goods sold.

In Variable Costing