Which of the Following Cost(s)are Inventoried When Using Variable Costing

question 7

Multiple Choice

Which of the following cost(s) are inventoried when using variable costing?

• A)direct manufacturing costs
• B)variable marketing costs
• C)fixed manufacturing costs
• D)Both A and B are correct.

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Definitions:

Managerial Decisions

Decisions made by managers within an organization, which affect the direction and operation of the business.

Underapplied Overhead

A situation where the allocated overhead costs are less than the actual overhead costs incurred.

Cost of Goods Sold

The total cost directly associated with producing the goods that have been sold during a specific period.

Period End

The conclusion of an accounting period, at which time financial statements are prepared and financial activities are summarized.