Which of the following are considered to be product costs under variable costing?
I.Variable manufacturing overhead.
II.Fixed manufacturing overhead.
III.Selling and administrative expenses.
A) I only.
B) I and II only.
C) I and III only.
D) I, II, and III.

Question

Quizplus · Accepted Answer

Under variable costing, only costs that vary directly with production volume are considered product costs. This includes variable manufacturing overhead but excludes fixed manufacturing overhead and selling and administrative expenses, which are treated as period costs.

Which of the Following Are Considered to Be Product Costs