All of the following are inventoried under variable costing except:
A)direct materials.
B)direct labor.
C)variable manufacturing overhead.
D)ﬁxed manufacturing overhead.
E)variable manufacturing overhead and ﬁxed manufacturing overhead.

Question

Quizplus · Accepted Answer

Fixed manufacturing overhead is not inventoried under variable costing since it is considered a period cost and is expensed in the period incurred rather than being allocated to inventory. Only direct materials, direct labor, and variable manufacturing overhead are inventoried under variable costing.

All of the Following Are Inventoried Under Variable Costing Except