Question: The primary difference between absorption and variable costing is that variable costing treats A. Only direct materials and direct labor as product cost. B. Only

The primary difference between absorption and variable costing is that variable costing treats
A. Only direct materials and direct labor as product cost.
B. Only direct materials, direct labor, the variable portion of manufacturing overhead, and the variable portion of selling and administrative expenses as product cost.
C. Only direct materials, direct labor, and the variable portion of manufacturing overhead as product costs.
D. Direct materials, direct labor, the variable portion of manufacturing overhead, and an allocated portion of fixed manufacturing overhead as product costs.

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