The method of costing that excludes fixed manufacturing costs from inventorial costs is known as

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Quizplus · Accepted Answer

Variable costing only includes variable manufacturing costs in the inventorial costs, while fixed costs are treated as period expenses. This method is useful for internal management decisions and analysis, as it allows for a clearer understanding of the relationship between production levels and costs, and avoids allocating fixed costs to units that may not have contributed to their incurrence.

The Method of Costing That Excludes Fixed Manufacturing Costs from Inventorial