Which of the following is a term more descriptive of the term "direct costing"?
A)out-of-pocket costing
B)variable costing
C)relevant costing
D)prime costing

Question

Quizplus · Accepted Answer

"Variable costing" is a term that is more descriptive of "direct costing" because in both cases, only variable costs are included in the cost of production. "Out-of-pocket costing" refers to the actual costs incurred, including both variable and fixed costs, while "relevant costing" refers to identifying the most relevant costs for decision-making. "Prime costing" refers to the sum of direct material, direct labor, and direct expenses, and is not necessarily limited to variable costs only.

Which of the Following Is a Term More Descriptive of the Term