Which of the following statements is TRUE of variable costing?
A) It considers variable manufacturing overhead as period costs.
B) It considers fixed manufacturing overhead as product costs.
C) It considers variable selling and administrative costs as product costs.
D) It considers fixed selling and administrative costs as period costs.

Question

Quizplus · Accepted Answer

Variable costing treats fixed selling and administrative costs as period costs, meaning they are expensed in the period they are incurred, rather than being included in product costs.

Which of the Following Statements Is TRUE of Variable Costing