COST ACCOUNTING
VARIABLE COSTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Under variable costing, which is classified as product costs?
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only variable production costs
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only direct material cost
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all variable costs
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all variable and fixed production costs
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Explanation:
Detailed explanation-1: -Variable costing includes only variable production costs in product costs. Direct materials, direct labor and variable manufacturing overhead costs would ordinarily be included in product costs under variable costing. Fixed manufacturing overhead is not treated as a product cost under this method.
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