Which of the following is true regarding the variable inventory costing method?

Question

Quizplus · Accepted Answer

The variable inventory costing method only includes variable production costs in the inventory at the end of the period, while current fixed production costs are expensed to the income statement each period. This method allows for a more accurate determination of cost of goods sold and allows for better decision-making. It is not required by GAAP, but is an acceptable alternative to the traditional absorption costing method.

Which of the Following Is True Regarding the Variable Inventory