The correct answer is option (b) direct costing
Another name for variable costing is direct costing.
What is Variable costing?
- A variable taken a toll is an cost that changes in extent to generation yield or sales.
- When generation or deals increment, variable costs increment; when generation or deals diminish, variable costs decrease.
- Variable costs stand in differentiate to settled costs, which don't alter in extent to generation or deals volume.
- Variable costs are a central portion in deciding a product's commitment edge, the metric utilized to decide a company's break-even or target benefit level.
- Examples of variable costs incorporate crude materials, labor, utilities, commission, or dissemination costs.
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