Which of the following statements pertain to both variable costing and absorption costing?
A)The income statement discloses the amount of gross margin generated during the reporting period.
B)Fixed selling and administrative expenses are treated in the same manner as fixed manufacturing overhead.
C)Fixed selling and administrative expenses are treated in the same manner as variable manufacturing overhead.
D)Both variable and absorption costing can be used for external financial reporting.
E)Variable selling costs are treated as period costs.

Question

Quizplus · Accepted Answer

In both variable costing and absorption costing, variable selling costs are treated as period costs.

Which of the Following Statements Pertain to Both Variable Costing