Which of the following is NOT a product cost under variable costing?
A) Direct materials
B) Direct labor
C) Variable manufacturing overhead
D) Fixed manufacturing overhead

Question

Quizplus · Accepted Answer

Fixed manufacturing overhead is not considered a product cost under variable costing because it is a period cost and is not directly tied to the production of a particular unit of product. Variable costing only includes costs that vary with changes in production levels, such as direct materials, direct labor, and variable manufacturing overhead.

Which of the Following Is NOT a Product Cost Under