Why is the term direct costing a misnomer? Question content area bottom Part 1 A. Variable (direct) costing does not include all direct costs as inventoriable costs. Only variable direct manufacturing costs are included. Any fixed direct manufacturing costs, and any direct nonmanufacturing costs (either variable or fixed), are excluded from inventoriable costs. B. Variable (direct) costing includes as inventoriable costs not only direct manufacturing costs but also some indirect costs (variable indirect manufacturing costs). C. Variable (direct) costing considers both variable manufacturing and variable nonmanufacturing costs as period costs, which are expensed. D. Both a and b are correct..

1. Why is the term direct costing a misnomer?
Question content area bottom
Part 1
A.
Variable (direct) costing does not include all direct costs as inventoriable costs. Only variable
direct manufacturing costs are included. Any fixed direct manufacturing costs, and any direct
nonmanufacturing costs (either variable or fixed), are excluded from inventoriable costs.
B.
Variable (direct) costing includes as inventoriable costs not only direct manufacturing costs but
also some indirect costs (variable indirect manufacturing costs).
C.
Variable (direct) costing considers both variable manufacturing and variable nonmanufacturing
costs as period costs, which are expensed.
D.
Both a and b are correct.