Period costs under the variable costing method include ________.
A) variable manufacturing overhead
B) variable selling and administrative costs
C) direct materials
D) direct labor

Question

Quizplus · Accepted Answer

Period costs under the variable costing method include only variable selling and administrative costs, as direct materials and direct labor are considered product costs and are included in the inventory valuation under the variable costing method. Variable manufacturing overhead may also be a period cost under the variable costing method, but it is not listed as an option.

Period Costs Under the Variable Costing Method Include ________