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 costs.
It's B. Direct Labor and Direct Material (e.g., Manufacturing supplies) are product costs under variable costing. https://corporatefinanceinstitute.com/resources/knowledge/accounting/variable-costing/
B is correct. Direct labor is part of variable costing.
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