The production cost under marginal costing includes prime cost and variable overhead. So, the correct answer is d. prime cost and variable overhead.

Here's why:

Marginal costing, also known as variable costing, includes only the variable costs of production as product costs. These variable costs include:

1. Direct materials: These are the raw materials that are directly involved in the production process.

2. Direct labor: This is the cost of the labor that is directly involved in the production process.

3. Variable manufacturing overhead: These are the other variable costs that are directly involved in the production process.

Fixed overhead costs are not included in the product costs under marginal costing. These costs are treated as period costs and are expensed in the period they occur.

Question

The production cost under marginal costing includes prime cost and variable overhead. So, the correct answer is d. prime cost and variable overhead.

Here's why:

Marginal costing, also known as variable costing, includes only the variable costs of production as product costs. These variable costs include:

1. Direct materials: These are the raw materials that are directly involved in the production process.

2. Direct labor: This is the cost of the labor that is directly involved in the production process.

3. Variable manufacturing overhead: These are the other variable costs that are directly involved in the production process.

Fixed overhead costs are not included in the product costs under marginal costing. These costs are treated as period costs and are expensed in the period they occur.

Knowee AI · Accepted Answer

The production cost under marginal costing includes prime cost and variable overhead. So, the correct answer is d. prime cost and variable overhead.

Here's why:

Marginal costing, also known as variable costing, includes only the variable costs of production as product costs. These variable costs include:

1. Direct materials: These are the raw materials that are directly involved in the production process.

2. Direct labor: This is the cost of the labor that is directly involved in the production process.

3. Variable manufacturing overhead: These are the other variable costs that are directly involved in the production process.

Fixed overhead costs are not included in the product costs under marginal costing. These costs are treated as period costs and are expensed in the period they occur.

Production cost under marginal costing includes .a.prime cost and fixed overhead .b.prime cost, variable overhead and fixed overhead.c.prime cost only .d.. prime cost and variable overhead.

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