Final answer:
Direct costing or marginal costing are other terms for variable costing. Variable costing is a costing method where only the variable costs are considered in the product cost calculation.
Step-by-step explanation:
Direct costing or marginal costing are other terms for variable costing. Variable costing is a costing method where only the variable costs are considered in the product cost calculation.
In variable costing, fixed costs are treated as period costs and are not included in the product cost. This is in contrast to absorption costing, where fixed costs are allocated to each unit of production.
Variable costing provides a more accurate reflection of the cost of producing each unit and can help in decision-making, such as pricing, product mix, and profitability analysis.