Variable costing considers only ________ costs when determining product costs.
A) fixed manufacturing
B) variable manufacturing
C) variable selling and administrative
D) fixed selling and administrative

Question

Quizplus · Accepted Answer

Variable costing only considers variable manufacturing costs when determining product costs. Fixed manufacturing costs are considered period expenses and are not included in the product cost calculation. Variable selling and administrative costs may be considered in determining the contribution margin but are not included in the product cost calculation. Fixed selling and administrative costs are considered period expenses and are not included in either the product cost or contribution margin calculations.

Variable Costing Considers Only ________ Costs When Determining Product Costs