Which of the Following Is Not True of the Direct

Multiple Choice

Which of the following is not true of the direct costing procedure?

A) Variable selling expenses are deducted from the manufacturing margin.
B) The cost of goods sold, based solely on variable costs, is subtracted from net sales to arrive at the manufacturing margin.
C) Variable and fixed costs are considered part of the cost of goods manufactured.
D) Variable administrative expenses are deducted from the manufacturing margin.