In super variable costing, all costs other than direct material costs are recorded in the period ________?
Correct answer: D. of incurring
- A. of indirect recording
- B. of sale
- C. of manufacturing
- D. of incurring
Explanation
Super variable costing, also known as throughput costing, treats direct material as the only inventoriable cost. All other costs are charged to the period in which they are incurred.
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About Cost Accounting
Cost accounting measures and analyses the cost of producing goods or providing services for planning, control and pricing decisions. It covers direct and indirect costs, fixed and variable costs, job and process costing, break-even analysis, marginal costing, overhead allocation, and the difference between product cost and period cost.
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