Which aspect of company operations does direct costing primarily affect?

Direct costing primarily affects the costing of products because it focuses on variable costs that can be directly attributed to the production of goods. This method of costing emphasizes the spending related directly to manufacturing, such as raw materials and labor costs, while excluding fixed costs from product costs. By isolating variable costs, direct costing provides a clearer view of how changes in production levels impact profitability. This clarity helps management make informed decisions regarding pricing, budgeting, and product line optimization, directly influencing how products are costed and evaluated for profitability.