________ is a method of inventory costing in which only variable manufacturing costs are included as inventoriable costs.
A) Fixed costing
B) Variable costing
C) Absorption costing
D) Mixed costing

Question

Quizplus · Accepted Answer

Variable costing is a method of inventory costing in which only variable manufacturing costs are included as inventoriable costs. This means that only those costs that vary with the level of production are included in the cost of goods sold and inventory valuation. Fixed manufacturing costs, on the other hand, are treated as period costs and are expensed in the period in which they are incurred. This method is also known as direct costing or marginal costing.

________ Is a Method of Inventory Costing in Which Only