Which of the following is normally included in product cost under the variable costing method?
A) Direct materials cost, direct labour cost, but NOT manufacturing overhead cost.
B) Direct materials cost, direct labour cost, and variable manufacturing overhead cost.
C) Prime cost but NOT conversion cost.
D) Prime cost and all conversion cost.

Question

Quizplus · Accepted Answer

Variable costing includes all variable manufacturing costs such as direct materials, direct labor, and variable overhead costs, but excludes fixed manufacturing overhead costs.

Which of the Following Is Normally Included in Product Cost