Under Variable Costing, Which of the Following Costs Would Not

question 28

Multiple Choice

Under variable costing, which of the following costs would not be included in finished goods inventory?

• A)direct labor cost
• B)direct materials cost
• C)variable factory overhead cost
• D)fixed factory overhead cost

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Definitions:

Occupancy Expenses

Expenses related to occupying a space, including rent, utilities, and property insurance.

Spending Variance

The difference between the actual and planned or budgeted amount of spending, indicating over or under spending.

Client-Visits

The number of times clients or customers physically or virtually engage with a business, often used to measure engagement or service levels.

Wages and Salaries

Monetary compensation paid to employees for their labor, with wages typically referring to hourly pay and salaries to annual earnings.