Which of the following terms is commonly used to describe the concept whereby the cost of manufactured products is composed of direct materials cost, direct labor cost, and variable factory overhead cost?
A)absorption costing
B)differential costing
C)standard costing
D)variable costing

Question

Quizplus · Accepted Answer

Variable costing is the accounting method that includes only direct materials, direct labor, and variable manufacturing overhead costs as product costs. This approach does not allocate fixed manufacturing overhead to products, distinguishing it from absorption costing.

Which of the Following Terms Is Commonly Used to Describe