Variable costing income is a function of
A)only units sold.
B)only units produced.
C)both units sold and units produced.
D)neither units sold nor units produced.

Question

Quizplus · Accepted Answer

Variable costing income only considers the costs that vary with the level of production or sales, such as direct materials, direct labor, and variable manufacturing overhead. Therefore, variable costing income is solely dependent on the number of units sold, not the number of units produced.

Variable Costing Income Is a Function of