Under variable costing, which of the following costs would not be included in finished goods inventory?
A)wages of machine operator
B)steel costs for a machine tool manufacturer
C)salary of factory supervisor
D)electricity used by factory machinery

Question

Quizplus · Accepted Answer

Under variable costing, only variable costs are included in the cost of inventory. The salary of a factory supervisor is considered a fixed cost, not a variable cost, and therefore would not be included in the finished goods inventory costs.

Under Variable Costing, Which of the Following Costs Would Not