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cwang1026
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Joined: 16 Jun 2010
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Posts: 114

Posted: 09 Jan 2012 at 18:51 \| IP Logged

Hello all,

I was working on a problem in Becker and came across this question:

Using the variable costing method, which of the following costs are assigned to inventory?

Variable selling and administrative costs = No
Variable factory OH costs = Yes

I thought that variable selling costs (i.e. shipping and commission) were included in inventory cost? Can someone please confirm?

Thanks.

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ramplacentia
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Joined: 06 Dec 2011
Location: United States
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Posts: 37

Posted: 10 Jan 2012 at 21:29 \| IP Logged

consider manuf. expenses only for inventory

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