When the variable costing method is used, fixed factory overhead appears on the income statement as a_____.
A)component of cost of goods sold
B)fixed expense
C)production-volume variance
D)component of cost of goods sold and as a production-volume variance

Question

Quizplus · Accepted Answer

When the variable costing method is used, fixed factory overhead is not included in the cost of goods sold. Instead, it is treated as a period cost and appears on the income statement as a fixed expense.

When the Variable Costing Method Is Used, Fixed Factory Overhead