Which of the following is a more descriptive term of the type of cost accounting often called "variable costing"?
A)Prime costing
B)Out-of-pocket costing
C)Direct costing
D)Relevant costing

Question

Quizplus · Accepted Answer

Direct costing is a more descriptive term of the type of cost accounting often called "variable costing". Direct costing only considers the direct costs (variable costs) of production, such as materials and labor, and ignores fixed overhead costs. This approach is useful for analyzing the contribution margin of products and can help with decision-making on pricing and production levels.

Which of the Following Is a More Descriptive Term of the Type