What term 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 contrasts with absorption costing, which also includes fixed manufacturing overhead in product costs.

What Term Is Commonly Used to Describe the Concept Whereby