Examlex
Which of the following definitions is FALSE?
Variable Costing
A costing method that includes only variable manufacturing costs - direct materials, direct labor, and variable manufacturing overhead - in product costs.
Variable Cost
Variable costs are expenses that vary directly with the level of production or sales volume.
Absorption Costing
An accounting method that includes all of the manufacturing costs in the cost of a product, including direct labor, materials, and overhead.
Variable Costing
A costing method that includes only variable manufacturing costs—direct materials, direct labor, and variable manufacturing overhead—in unit product costs.
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