There is no output-level variance for variable costing, when ________.
A) the inventory level decreases during the period
B) the inventory level increases during the period
C) fixed manufacturing overhead is allocated to work in process
D) fixed manufacturing overhead is not allocated to work in process

Question

Quizplus · Accepted Answer

Variable costing does not allocate fixed manufacturing overhead to the products, hence there will be no output-level variance regardless of whether the inventory levels increase, decrease or remain the same during the period.

There Is No Output-Level Variance for Variable Costing, When ________