________ is a method of inventory costing in which only variable manufacturing costs are included as inventoriable costs.
A)Absorption costing
B)Fixed costing
C)Mixed costing
D)Variable costing

Question

Quizplus · Accepted Answer

Variable costing is a method of inventory costing in which only variable manufacturing costs such as direct materials, direct labor, and variable manufacturing overhead are included in the cost of inventory. Fixed manufacturing costs such as rent, property taxes, and salaries of management staff are treated as period expenses and are not included in inventory costs. This method can provide a clearer picture of the contribution margin made by each product, aiding in decision-making processes.

________ Is a Method of Inventory Costing in Which Only