Answer
Direct Costing is a misnomer for variable costing for two reasons.
a. Variable costing only includes some specific direct costs in what they call "inventoriable costs." It counts the variable direct manufacturing costs but leaves out any fixed direct manufacturing costs and other direct costs, whether they're variable or fixed.
b. Variable costing also includes some indirect costs, especially those that change with production levels, in these inventoriable costs.
So, basically, "direct costing" doesn't really describe variable costing accurately because it leaves out certain costs and includes others that aren't always direct. It's a bit of a misnomer.
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