Which of the following is not included in the product cost under variable costing?
A) Direct materials.
B) Fixed manufacturing overhead.
C) Direct labor.
D) Variable manufacturing overhead.
E) All variable manufacturing costs.

Question

Quizplus · Accepted Answer

Fixed manufacturing overhead is not included in the product cost under variable costing because it is not a variable cost. Variable costs are those that change with the level of production, while fixed costs remain the same regardless of the level of production.

Which of the Following Is Not Included in the Product