Under variable costing, which of the following costs would be included in finished goods inventory?
A)salary of salesperson
B)salary of vice president of finance
C)wages of carpenters in a furniture factory
D)straight-line depreciation on factory equipment

Question

Quizplus · Accepted Answer

Under variable costing, only variable manufacturing costs are included in finished goods inventory. Wages of carpenters in a furniture factory are a direct labor cost, which is a variable manufacturing cost.

Under Variable Costing, Which of the Following Costs Would Be