All of the Following Are Expensed Under Variable Costing Except

question 21

Multiple Choice

All of the following are expensed under variable costing except:

• A) variable manufacturing overhead.
• B) fixed manufacturing overhead.
• C) variable selling and administrative costs.
• D) fixed selling and administrative costs.
• E) variable selling and administrative costs and fixed selling and administrative costs.

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Definitions:

Marginal Cost

The cost of producing one additional unit of a good or service, often considered in decision-making about production levels.

Marginal Revenue

The additional income earned from selling one more unit of a good or service; it's a crucial concept for decision-making in businesses.

Economic Profit

The total revenue of a business minus its explicit and implicit costs, representing the surplus remaining after accounting for all costs, including opportunity costs.

Accounting Profit

The net income of a company after subtracting all costs and expenses from total revenues, as shown in the financial statements.