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Exam IIA-CIA-Part3 topic 2 question 44 discussion

Actual exam question from IIA's IIA-CIA-Part3
Question #: 44
Topic #: 2
[All IIA-CIA-Part3 Questions]

Which of the following is classified as a product cost using the variable costing method?
1. Direct labor costs.
2. Insurance on a factory.
3. Manufacturing supplies.
4. Packaging and shipping costs.

  • A. 1 and 2.
  • B. 1 and 3.
  • C. 2 and 4.
  • D. 3 and 4.
Show Suggested Answer Hide Answer
Suggested Answer: D 🗳️
by Mike12345678 at April 8, 2021, 5:04 p.m.

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Crazyhydra
6 months, 3 weeks ago
I think D is also correct :/
upvoted 1 times
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[Removed]
6 months, 4 weeks ago
Selected Answer: B
answer is B
upvoted 2 times
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ciacandidate
8 months, 1 week ago
B is correct. Please, stop misleading candidates.
upvoted 2 times
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yomang
2 years, 9 months ago
It's B. Direct Labor and Direct Material (e.g., Manufacturing supplies) are product costs under variable costing. https://corporatefinanceinstitute.com/resources/knowledge/accounting/variable-costing/
upvoted 2 times
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LCK
2 years, 9 months ago
Product costs under variable costing include direct materials, direct labor, and variable factory overhead. Each is a variable production cost
upvoted 1 times
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Mike12345678
3 years ago
B is correct. Direct labor is part of variable costing.
upvoted 2 times
...

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A (35%)
C (25%)
B (20%)
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