Which of the following best describes costs assigned to the product under the variable costing method?
Direct labor (DL)
Direct materials (DM)
Variable selling and administrative (VSA)
Variable manufacturing overhead (VOH)
Fixed selling and administrative (FSA)
Fixed manufacturing overhead (FOH)
A)DL,DM,VSA,and VOH.
B)DL,DM,and VOH.
C)DL,DM,VOH,and FOH.
D)DL and DM.
E)DL,DM,FSA,and FOH.

Question

Which of the following best describes costs assigned to the product under the variable costing method? 
Direct labor (DL)
Direct materials (DM)
Variable selling and administrative (VSA)
Variable manufacturing overhead (VOH)
Fixed selling and administrative (FSA)
Fixed manufacturing overhead (FOH)
A)DL,DM,VSA,and VOH.
B)DL,DM,and VOH.
C)DL,DM,VOH,and FOH.
D)DL and DM.
E)DL,DM,FSA,and FOH.

Quizplus · Accepted Answer

Variable costing method only assigns direct labor, direct materials, and variable overhead costs to the product. Fixed costs, such as fixed manufacturing overhead and fixed selling and administrative costs, are treated as period costs and are expensed in the period they are incurred.

Which of the Following Best Describes Costs Assigned to the Product