Which of the Following Is Normally Included in Product Cost

question 118

Multiple Choice

Which of the following is normally included in product cost under the variable costing method?

• A) Direct materials cost, direct labour cost, but NOT manufacturing overhead cost.
• B) Direct materials cost, direct labour cost, and variable manufacturing overhead cost.
• C) Prime cost but NOT conversion cost.
• D) Prime cost and all conversion cost.

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Definitions:

Custom Jewelry

Jewelry pieces that are made according to the specifications or preferences of the customer, offering a personalized experience.

Art

Human creative skill and imagination, typically expressed through visual forms such as painting, sculpture, or photography, producing works to be appreciated for their beauty or emotional power.

Oral Auctions

Competitive bidding events where buyers vocally submit their bids for items or services in real time.

Winner Pays

A bidding or auction principle where the winning bidder is responsible for paying the price they proposed, commonly used in auctions and certain competitive scenarios.