Direct labor is always considered to be a product cost under variable costing.

Name: Direct labor is always considered to be a product cost under variable costing.
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Question

Quizplus · Accepted Answer

Variable costing only considers variable costs as product costs, while direct labor may have both fixed and variable components. Therefore, under variable costing, direct labor may be considered as a period cost rather than a product cost.

Direct Labor Is Always Considered to Be a Product Cost