All of the following are inventoriable costs under variable costing EXCEPT
A) direct materials.
B) direct labour.
C) variable manufacturing overhead.
D) fixed manufacturing overhead.

Question

Quizplus · Accepted Answer

Fixed manufacturing overhead is not treated as an inventoriable cost under variable costing because it is considered a period cost and is expensed in the period in which it is incurred. Under variable costing, only variable manufacturing costs are inventoried as part of the cost of goods sold. Direct materials and direct labor are also inventoriable costs under variable costing, as they are directly tied to the production of the product.

All of the Following Are Inventoriable Costs Under Variable Costing