Direct costing involves the use of contribution accounting.

Name: Direct costing involves the use of contribution accounting.
Brand: Quizplus
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Quizplus · Accepted Answer

Direct costing is also known as variable costing, and it specifically focuses on the contribution margin of a product or service. Contribution accounting calculates the contribution margin by subtracting the variable costs from the revenue. Therefore, it can be said that direct costing involves the use of contribution accounting.

Direct Costing Involves the Use of Contribution Accounting