Which Cost Is Charged to the Product Under Variable Costing

question 90

Multiple Choice

Which cost is charged to the product under variable costing?

• A) Variable manufacturing overhead
• B) Fixed manufacturing overhead
• C) Variable administrative expenses
• D) Fixed administrative expenses

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Definitions:

Rate of Return

The gain or loss on an investment over a specified period, expressed as a percentage of the investment's cost.

Direct Materials

Raw materials that can be directly attributed to the production of goods, easily identifiable and quantifiable.

Variable Costs

Costs that change in proportion to the level of production or sales activities of a business.

Cost Per Unit

Cost per unit is the total expense incurred to create or purchase a unit of product, calculated by dividing total costs by the number of units produced or purchased.