Which of the following would be included in the cost of a product manufactured according to variable costing?
A) sales commissions
B) property taxes on factory buildings
C) interest expense
D) direct materials

Question

Quizplus · Accepted Answer

Only direct materials are included in the cost of a product manufactured according to variable costing, as it only includes variable costs like direct materials, direct labor, and variable factory overhead. Sales commissions, property taxes on factory buildings, and interest expense are all considered as period costs and are expensed as incurred.

Which of the Following Would Be Included in the Cost