The variable costing method ordinarily includes in product costs the following: 1) Direct materials cost, direct labor cost, but no manufacturing overhead cost. 2) Direct materials cost, direct labor cost, and variable manufacturing overhead 2 cost. 3) Prime cost but not conversion cost. 4) Prime cost and all conversion cost. Which of the following are considered to be period costs I. Variable manufacturing overhead. II. Fixed manufacturing overhead. III. Variable selling and administrative expenses. 1) I, II, and III. O2) 11. 3) II and III. 4) I and II. Question 20 (2 points) Which of the following statements is true for a firm that uses absorption costing? In a segmented contribution format income statement, what is the best measure of the long-run profitability of a segment? 1) its gross margin 2) its contribution margin 3) its segment margin 4) its segment margin minus an allocated portion of common fixed expenses