Which of the following costs is inventoried when using variable costing?
A) rent on factory building
B) electricity consumed in manufacturing process
C) sales commission paid on each sale
D) advertising costs incurred for the product

Question

Quizplus · Accepted Answer

Variable costing only incorporates variable manufacturing costs, such as direct materials, direct labor, and variable manufacturing overhead, into inventory. Rent on a factory building, sales commissions, and advertising costs are all fixed costs that would be expensed immediately under variable costing.

Which of the Following Costs Is Inventoried When Using Variable