How Are Fixed Manufacturing Costs Handled Under Variable Costing

Multiple Choice

How are fixed manufacturing costs handled under variable costing?

A) They are subtracted from the variable cost of goods sold to determine the ending inventory value that will be recorded on the Balance Sheet.
B) They are not recorded, which is why variable costing is not used for external reporting.
C) They are recorded directly on the Balance Sheet.
D) They are treated as period costs.