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 costa.

The correct answer is B. 1 and 3. See the full explanation below for the reasoning.

Question

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 costa.

Options

A1 and 2
B1 and 3
C2 and 4
D3 and 4

How the community answered

(52 responses)

A
12% (6)
B
79% (41)
C
4% (2)
D
6% (3)

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