What item would not be part of the cost of inventory under the variable costing method?
A)depreciation on the manufacturing building
B)direct materials
C)direct labor
D)all of the above would be included in the variable cost of inventory

Question

Quizplus · Accepted Answer

Under the variable costing method, only direct materials, direct labor, and variable manufacturing overhead are included in the cost of inventory. Depreciation on the manufacturing building is a fixed cost and is not included in the variable cost of inventory.

What Item Would Not Be Part of the Cost of Inventory