Variable Costing Considers Only ________ Costs When Determining Product Costs

question 19

Multiple Choice

Variable costing considers only ________ costs when determining product costs.

• A) fixed manufacturing
• B) variable manufacturing
• C) variable selling and administrative
• D) fixed selling and administrative

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Definitions:

Ending Inventory

The worth of merchandise ready for purchase at the close of a financial period, determined by adding purchases to the initial inventory and then subtracting the cost of goods that were sold.

First-In, First-Out Method

An inventory valuation method where the earliest items added to inventory are the first ones considered sold.

Equivalent Units

A measure used in process costing that converts partially completed goods into an equivalent number of fully completed units.

Production Consideration

Factors or aspects taken into account during the manufacturing process, including efficiency, cost, and quality.