Which of the following will not affect Net Income under variable costing?
A) Incurring additional fixed costs
B) A change in the fixed overhead application rate
C) Production levels not being the same as sales
D) A change in the price paid for direct materials
E) None of the above will affect Net Income

Question

Quizplus · Accepted Answer

Under variable costing, fixed overhead is treated as a period cost and is not allocated to products, so changes in the fixed overhead application rate do not affect net income.

Which of the Following Will Not Affect Net Income Under