When using the contribution approach to costing,
A) all factory overhead is inventoriable.
B) all indirect manufacturing costs are inventoriable.
C) all selling expenses are deducted from the contribution margin.
D) all fixed costs are treated as period costs.

Question

Quizplus · Accepted Answer

In the contribution approach to costing, also known as variable costing, all fixed costs are treated as period costs and are not included in the product cost. Only variable costs are included in the product cost.

When Using the Contribution Approach to Costing