When the variable costing method is used,fixed factory overhead appears on the income statement as a ________.
A) component of cost of goods sold
B) component of cost of goods sold and production volume variance
C) production volume variance
D) fixed expense

Question

Quizplus · Accepted Answer

When the variable costing method is used, fixed factory overhead is treated as a period cost and therefore appears on the income statement as a fixed expense. It is not included in the cost of goods sold or production volume variance.

When the Variable Costing Method Is Used,fixed Factory Overhead Appears