Product costs for variable costing include direct materials,direct labor and ________.
A) variable selling costs
B) fixed manufacturing overhead costs
C) variable manufacturing overhead costs
D) variable manufacturing overhead costs plus variable selling costs

Question

Quizplus · Accepted Answer

Variable costing only includes variable costs, which are costs that vary with production levels. Direct materials and direct labor are two examples of variable costs, while fixed manufacturing overhead costs are not considered variable costs. Variable manufacturing overhead costs are costs that vary with production levels, and are therefore included in product costs for variable costing. Variable selling costs are not considered product costs, as they are expenses incurred to sell the product and not to produce it.

Product Costs for Variable Costing Include Direct Materials,direct Labor and ________