Which of the following statements pertain to variable costing?
A)This method must be used for external financial reporting.
B)Fixed manufacturing overhead is attached to each unit produced.
C)The income statement discloses a company's gross margin.
D)Variable manufacturing overhead is immediately expensed.
E)Fixed not fixed manufacturing overhead is not applied to work in process as a product cost.

Question

Quizplus · Accepted Answer

In variable costing, only variable manufacturing costs are included in product costs, while fixed manufacturing overhead is treated as a period expense and not applied to work in process.

Which of the Following Statements Pertain to Variable Costing