Which of the following is not true of the direct costing procedure?
A) Variable and fixed costs are considered as part of the cost of goods manufactured.
B) The cost of goods sold,based solely on variable costs,is subtracted from net sales to arrive at the manufacturing margin.
C) Variable selling expenses are deducted from the manufacturing margin.
D) Variable administrative expenses are deducted from the manufacturing margin.

Question

Quizplus · Accepted Answer

Direct costing only considers variable costs as part of the cost of goods manufactured, while fixed costs are treated as period expenses and deducted directly from the period's income.

Which of the Following Is Not True of the Direct