What does throughput costing primarily consider as product costs?

Throughput costing, also known as super-variable costing, is a managerial accounting method that focuses on the direct materials costs of production as the primary product cost. Under this approach, only variable production costs directly associated with the materials used in producing goods are treated as product costs. This means that only the costs of raw materials that are consumed in the manufacturing process are considered, while other costs like direct labor, variable overhead, and fixed overhead costs are treated as period expenses and are not included in inventory valuation.

This method emphasizes the importance of managing direct materials costs because, in a manufacturing environment, these costs are directly tied to the revenue generated from sales. By focusing on throughput, companies can improve their decision-making related to production efficiency and profitability, as it encourages them to look at the contribution margin available after accounting for direct material costs.

In contrast, the other options include different categories of costs that don't align with the core principle of throughput costing, which is solely concerned with the materials that go into creating the product.