Asked by Stone Jamison on Jun 17, 2024
Verified
Variable costing is also known as direct costing.
Variable Costing
An accounting method that considers only variable costs as product costs and treats fixed costs as period costs.
Direct Costing
An accounting method that identifies variable costs directly associated with production and excludes fixed costs from product costing.
- Comprehend the components of product expenses when utilizing variable costing.
Verified Answer
NH
natasha hendlerJun 21, 2024
Final Answer :
True
Explanation :
Variable costing, also known as direct costing, includes only variable costs (direct materials, direct labor, and variable manufacturing overhead) in the cost of a unit of product. Fixed manufacturing overhead is not included in product costs under this method.
Learning Objectives
- Comprehend the components of product expenses when utilizing variable costing.