Which of the following is classified as a product cost using the variable costing method?
1. Direct labor costs.
2. Insurance on a factory.
3. Manufacturing supplies.
4. Packaging and shipping costs.
Which of the following is classified as a product cost using the variable costing method?
1. Direct labor costs.
2. Insurance on a factory.
3. Manufacturing supplies.
4. Packaging and shipping costs.
Direct labor costs and manufacturing supplies are classified as product costs using the variable costing method. Variable costing includes all variable production costs such as direct materials, direct labor, and variable manufacturing overhead. Insurance on a factory is a fixed cost and packaging and shipping costs are considered period costs, not product costs.
answer is B
B is correct. Please, stop misleading candidates.
It's B. Direct Labor and Direct Material (e.g., Manufacturing supplies) are product costs under variable costing. https://corporatefinanceinstitute.com/resources/knowledge/accounting/variable-costing/
B is correct. Direct labor is part of variable costing.
I think D is also correct :/
Product costs under variable costing include direct materials, direct labor, and variable factory overhead. Each is a variable production cost