Which of the following statements is correct using the direct costing concept?
A)All manufacturing costs are included in the calculation of cost of goods manufactured.
B)Only fixed costs are included in the calculation of cost of goods manufactured, while variable costs are considered period costs.
C)Only variable manufacturing costs are included in the calculation of cost of goods manufactured, while fixed costs are considered period costs.
D)All manufacturing costs are considered period costs.

Question

Quizplus · Accepted Answer

Direct costing, also known as variable costing, includes only variable manufacturing costs in the calculation of cost of goods manufactured. Fixed manufacturing costs are treated as period costs and are expensed in the period they are incurred.

Which of the Following Statements Is Correct Using the Direct