On a variable-costing income state?ment, the cost of goods sold is measured at variable cost, which includes direct material, direct labor, and variable manufacturing overhead.

Question

Quizplus · Accepted Answer

Variable costing only includes costs that vary with output (direct materials, direct labor, and variable manufacturing overhead) in the cost of goods sold, excluding fixed manufacturing overhead.

On a Variable-Costing Income State?ment, the Cost of Goods Sold