Under variable costing, which manufacturing cost is expensed as a period cost?
A) Fixed manufacturing overhead.
B) Direct materials.
C) Variable manufacturing overhead.
D) Direct labour.

Question

Quizplus · Accepted Answer

Under variable costing, fixed manufacturing overhead is expensed as a period cost and not included in the cost of goods sold. Only variable manufacturing overhead, direct materials, and direct labour are included in the cost of goods sold under variable costing.

Under Variable Costing, Which Manufacturing Cost Is Expensed as a Period