Variable costing is also called ________.
A)full costing
B)traditional costing
C)absorption costing
D)direct costing

Question

Quizplus · Accepted Answer

Variable costing is also known as direct costing because it only includes direct costs like raw materials, direct labor, and variable overheads in the cost of production. It does not allocate fixed overheads to products, unlike absorption costing or full costing. Traditional costing is a broader term that can refer to any costing method that is not activity-based costing.

Variable Costing Is Also Called ________