Under variable costing, which of the following is not considered a product cost?
A)Fixed manufacturing overhead.
B)Variable manufacturing overhead.
C)Direct labor.
D)Direct materials.
E)Indirect materials.

Question

Quizplus · Accepted Answer

Under variable costing, fixed manufacturing overhead is considered a period cost and not a product cost. Product costs include direct materials, direct labor, and variable manufacturing overhead. Indirect materials are also considered product costs as they are used in the production process.

Under Variable Costing, Which of the Following Is Not Considered