Under the variable-cost approach, the cost base includes all of the following except
A) variable selling and administrative costs.
B) variable manufacturing costs.
C) total fixed costs.
D) All of these answers are included.

Question

Quizplus · Accepted Answer

The variable-cost approach only includes costs that vary with changes in production or sales levels, which are variable selling and administrative costs and variable manufacturing costs. Total fixed costs, on the other hand, do not vary with changes in production or sales levels and are therefore not included in the variable-cost approach.

Under the Variable-Cost Approach, the Cost Base Includes All of the Following