Which of the Following Is True Regarding the Variable Inventory

question 62

Multiple Choice

Which of the following is true regarding the variable inventory costing method?

• A) Current fixed production costs are retained in inventory at the end of the period
• B) Current fixed production costs are expensed to the income statement each period
• C) Cost of goods sold can be manipulated by the number of units produced
• D) It is the inventory costing method required by GAAP

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