All of the following are inventoried under variable costing except:
A)direct materials.
B)direct labour.
C)variable manufacturing overhead.
D)fixed manufacturing overhead.
E)variable manufacturing overhead and fixed manufacturing overhead.

Question

Quizplus · Accepted Answer

Fixed manufacturing overhead is not inventoried under variable costing because it is considered a period cost and is expensed in the period in which it is incurred. Variable costing only includes variable costs in the cost of goods sold calculation.

All of the Following Are Inventoried Under Variable Costing Except