Which of the following types of costs does not appear on a variable costing income statement?
A)direct materials
B)direct labor
C)fixed factory overhead per unit sold
D)variable selling expense
E)total administrative expense

Question

Quizplus · Accepted Answer

Fixed factory overhead per unit sold is not included in variable costing because it is a fixed cost that does not change with the level of production or sales. Variable costing only includes variable costs, such as direct materials, direct labor, and variable selling expenses, which vary with the level of activity. Total administrative expense is included in variable costing because it is a period cost and is not associated with the production or sale of a specific unit.

Which of the Following Types of Costs Does Not Appear