In Variable Costing Method, the fixed manufacturing cost in the calculation period is treated as _________?
Correct answer: D. expense
- A. variable quantity
- B. fixed quantity
- C. price
- D. expense
Explanation
Under variable costing, fixed manufacturing overhead is not attached to inventory; it is charged as a period expense. Only variable manufacturing costs are included in product cost.
Report an error
The more specific you are, the faster it gets fixed. A source beats an opinion.
Prefer email? support@testustad.com
About Cost Accounting
Cost accounting measures and analyses the cost of producing goods or providing services for planning, control and pricing decisions. It covers direct and indirect costs, fixed and variable costs, job and process costing, break-even analysis, marginal costing, overhead allocation, and the difference between product cost and period cost.
Practise Cost Accounting
941 free Cost Accounting MCQs from Accounting, each with the correct answer and an explanation. Unlimited attempts, no account needed.
Exams that ask Accounting questions like this
Accounting is on 2 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.
More Cost Accounting questions
The capacity level of operations which is less than theoretical capacity is considered as ___________?
The working capital cash outflow, cash outflow to buy machine and cash inflow from machine are the examples of ____________?
The horizontally across dimension of cost analysis is also called __________?
The denominator of the fixed manufacturing cost rate is __________?
The product capacity and costing, performance evaluation and regulatory requirements are the purposes of ___________?
An income statement in absorption costing follows the format of ___________?