Inventory Under the Variable Costing Method Includes

question 74

Multiple Choice

Inventory under the variable costing method includes:

• A) Direct materials cost, direct labor cost, but no factory overhead cost.
• B) Direct materials cost, direct labor cost, and variable factory overhead cost.
• C) Prime cost but not conversion cost.
• D) Prime cost and all conversion cost.

---

Definitions:

Fund Transfer

The movement of money from one account to another, either within the same financial institution or across different ones.

Certified Check

A check for which the issuing bank guarantees the availability of funds by verifying the drawer's signature and setting aside the check amount, thus ensuring payment.

Bankrupt

A legal status of a person or entity that cannot repay debts to creditors and has sought relief through bankruptcy proceedings.

Postdated Check

A check written with a date in the future, preventing the check from being deposited or cashed until that date.