Under variable costing, which of the following is not considered a product cost?
A) Direct materials
B) Direct labor
C) Fixed manufacturing overhead
D) Variable manufacturing overhead

Question

Quizplus · Accepted Answer

Under variable costing, only variable manufacturing costs such as direct materials, direct labor, and variable manufacturing overhead are considered product costs. Fixed manufacturing overhead is treated as a period cost and is expensed in the period it is incurred rather than being allocated to products as a cost of production.

Under Variable Costing, Which of the Following Is Not Considered