The fixed manufacturing cost under variable costing is ____________?
Correct answer: B. non-inventoriable
- A. inventoriable
- B. non-inventoriable
- C. high dividend
- D. low dividend
Explanation
Under variable costing, only variable manufacturing costs are included in inventory; fixed manufacturing overhead is expensed in the period incurred. Therefore, it is non-inventoriable.
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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.
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