The true statement in relation to direct costing is:

Name: The true statement in relation to direct costing is:
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Direct costing only recognizes as product costs those factory costs that vary with production. Direct materials, direct labor, and variable overhead are included as product costs, while fixed overhead is treated as a period cost. Direct costing is also called variable costing, and it allows for a quick calculation of contribution margin by subtracting variable costs from sales revenue.

The True Statement in Relation to Direct Costing Is