In variable costing only the cost of direct materials and direct labour form the cost of inventory.

Name: In variable costing only the cost of direct materials and direct labour form the cost of inventory.
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In variable costing, both direct materials and direct labor, as well as variable manufacturing overhead costs, are included in the cost of inventory. Fixed manufacturing overhead costs are treated as period expenses and are not included in the cost of inventory under variable costing.

In Variable Costing Only the Cost of Direct Materials and Direct