The costing method, in which the variable manufacturing costs are treated as inventoriable cost is called ___________?
Correct answer: C. variable costing
- A. manufacturing costing
- B. absorption costing
- C. variable costing
- D. labor costing
Explanation
Variable costing treats variable manufacturing costs as inventoriable and charges fixed manufacturing overhead to the period. Absorption costing, by contrast, inventoriably includes both variable and fixed manufacturing costs.
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
If the selling price is $5000, variable manufacturing cost per unit is $1500 and variable marketing cost per unit is $500, then contribution margin per unit will be __________?
The fixed manufacturing cost under variable costing is ____________?
The production volume variance under variable costing is ______________?
In absorption costing, the managers may increase operating income by producing ____________?
The numerator of the fixed manufacturing cost rate is ___________?
In an actual quantity of cost allocation used, base is multiplied to an actual fixed overhead rates, to calculate ___________?