Which of the Following Statements Pertain to Variable Costing

Multiple Choice

Which of the following statements pertain to variable costing?

A) This method must be used for external financial reporting.
B) Fixed manufacturing overhead is attached to each unit produced.
C) The income statement discloses a company's gross margin.
D) Variable manufacturing overhead is immediately expensed.
E) Fixed not fixed manufacturing overhead is not applied to work in process as a product cost.