In variable costing, which of the following will be included as part of inventory on a company's balance sheet?
A)Fixed production cost
B)Variable selling cost
C)Fixed selling costs
D)None of the answer choices will be part of inventory in variable costing.

Question

Quizplus · Accepted Answer

In variable costing, only variable manufacturing costs are included in inventory on a company's balance sheet. Fixed manufacturing costs, selling costs (both fixed and variable), and administrative costs are expensed as they are incurred and are not included in inventory.

In Variable Costing, Which of the Following Will Be Included