Under variable costing, product costs consist of direct materials, direct labor, and variable manufacturing overhead.

Name: Under variable costing, product costs consist of direct materials, direct labor, and variable manufacturing overhead.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Variable costing only includes direct materials, direct labor, and variable manufacturing overhead in the product costs. Fixed manufacturing overhead is treated as a period cost and is expensed in the period incurred rather than allocated to the products.

Under Variable Costing, Product Costs Consist of Direct Materials, Direct