1C1F IF A MANUFACTURING COMPANY USES VARIABLE COSTING TO COST INVENTO...

171. CSO: 1C1e LOS: 1C1f

If a manufacturing company uses variable costing to cost inventories, which of the

following costs are considered inventoriable costs?

a. Only raw material, direct labor, and variable manufacturing overhead costs.

b. Only raw material, direct labor, variable and fixed manufacturing overhead costs.

c. Only raw material, direct labor, variable manufacturing overhead and variable

selling and administrative costs.

d. Only raw material and direct labor costs.