The costing method, in which the direct material cost is included in inventoriable cost is called ___________?
Correct answer: D. both B and C
- A. manufacturing cost
- B. super variable costing
- C. throughput costing
- D. both B and C
Explanation
Both super variable costing and throughput costing treat direct material as the only inventoriable cost, with other manufacturing costs treated as period costs. Therefore, both options B and C apply.
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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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