All of the Following Are Inventoried Under Variable Costing Except

question 39

Multiple Choice

All of the following are inventoried under variable costing except:

• A)direct materials.
• B)direct labour.
• C)variable manufacturing overhead.
• D)fixed manufacturing overhead.
• E)variable manufacturing overhead and fixed manufacturing overhead.

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Definitions:

Activity-Based Costing

A costing method that assigns costs to products or services based on the activities they require, aiming to provide more accurate product cost information.

Machine-Hours

A unit of measure representing the operating time of a machine, used in allocating costs to products based on machine usage.

First Stage Allocations

In managerial accounting, it refers to the process of allocating overhead costs initially to various departments or cost pools.

Supervising Costs

Expenses related to the management and oversight of production processes or organizational employees.