In marginal costing, the costs included in product costs are:

b. Direct materials and direct labor

This is because marginal costing, also known as variable costing, includes only the variable costs directly attributable to the production of goods. These typically include direct materials and direct labor.

Fixed production overheads (option c) are not included because they do not vary with the level of output.

Variable selling costs (option a) and a combination of direct materials, direct labor, and variable selling costs (option d) are also not included because selling costs, whether variable or fixed, are typically considered period costs, not product costs. They are not directly tied to the production of goods.

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In marginal costing, the costs included in product costs are:

b. Direct materials and direct labor

This is because marginal costing, also known as variable costing, includes only the variable costs directly attributable to the production of goods. These typically include direct materials and direct labor.

Fixed production overheads (option c) are not included because they do not vary with the level of output.

Variable selling costs (option a) and a combination of direct materials, direct labor, and variable selling costs (option d) are also not included because selling costs, whether variable or fixed, are typically considered period costs, not product costs. They are not directly tied to the production of goods.

Knowee AI · Accepted Answer

In marginal costing, the costs included in product costs are:

b. Direct materials and direct labor

This is because marginal costing, also known as variable costing, includes only the variable costs directly attributable to the production of goods. These typically include direct materials and direct labor.

Fixed production overheads (option c) are not included because they do not vary with the level of output.

Variable selling costs (option a) and a combination of direct materials, direct labor, and variable selling costs (option d) are also not included because selling costs, whether variable or fixed, are typically considered period costs, not product costs. They are not directly tied to the production of goods.

In marginal costing, which of the following costs are included in product costs?Question 8Answera.Variable selling costsb.Direct materials and direct laborc.Fixed production overheadsd.Direct materials, direct labour and variable selling costs

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