Variable costing is also referred to as
A)Absorption costing
B)Normal costing
C)Direct costing
D)Full costing

Question

Quizplus · Accepted Answer

Variable costing is also known as direct costing because it only considers variable production costs, such as direct labor and direct materials, in determining the cost of producing a product. It does not include fixed manufacturing overhead costs like absorption costing or full costing. Normal costing is a costing method that uses actual direct material costs and estimated overhead costs to determine the cost of a product.

Variable Costing Is Also Referred to as