Variable costing includes all variable costsboth manufacturing and nonmanufacturingin inventory.

Name: Variable costing includes all variable costsboth manufacturing and nonmanufacturingin inventory.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Variable costing only includes variable manufacturing costs in inventory, while nonmanufacturing expenses (such as selling and administrative costs) are expensed in the period they are incurred. Fixed manufacturing costs are also not included in inventory under variable costing.

Variable Costing Includes All Variable Costsboth Manufacturing and Nonmanufacturingin Inventory