Under Variable Costing, Which of the Following Is Not Considered

question 16

Multiple Choice

Under variable costing, which of the following is not considered a product cost?

• A) Direct materials
• B) Direct labor
• C) Fixed manufacturing overhead
• D) Variable manufacturing overhead

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Definitions:

Market Value

The present cost at which a service or asset is available for purchase or sale in the market.

FIFO

"First In, First Out," an inventory valuation method where goods purchased or produced first are sold or used first.

Realized Holding Gains

Gains recognized from the sale of an investment or asset that were previously unrealized.

Rising Prices

An economic condition characterized by a general increase in consumer prices or the cost of living, often referred to as inflation.