Inventory cost under variable costing includes:
A)Only direct materials costs
B)Only variable production costs
C)Variable and fixed production costs
D)All of the costs of the organization

Question

Quizplus · Accepted Answer

Inventory cost under variable costing includes only the variable production costs such as direct materials, direct labor, and variable overhead. Fixed production costs are expensed as period costs under variable costing.

Inventory Cost Under Variable Costing Includes