Under variable costing,each unit of the company's inventory would be carried at:
A)$49.
B)$54.
C)$72.
D)$104.
E)some other amount.

Question

Quizplus · Accepted Answer

Under variable costing, only variable costs are considered in the cost of inventory. In this case, the variable costs are direct materials ($18), direct labor ($7), and variable manufacturing overhead ($24), which add up to $49 per unit. Therefore, each unit of the company's inventory would be carried at $49 under variable costing.

Under Variable Costing,each Unit of the Company's Inventory Would Be