edivakjengason edivakjengason
  • 18-03-2017
  • Business
contestada

Under variable costing, which of the following costs would not be included in finished goods inventory?

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metchelle
metchelle metchelle
  • 29-03-2017
I had to look for the options and here is my answer:

Based on variable costing, the cost that should not be part in finished goods inventory is the FIXED FACTORY OVERHEAD COST. This is not included in the inventory cost because this remains fixed and unaffected despite the changes in the volume of production of the goods. 
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