Question

Under a _____ costing income statement, only variable costs are included in the computation of total cost per unit.

Answer 1

Variable costing income statement

Step-by-step explanation:

The Variable costing income statement only includes variable costs in the cost per unit product. Variable costs examples are raw materials, direct labor and other variable overheads.

The fixed manufacturing costs together with the non-manufacturing costs are treated as period costs and expensed in the period in which they are incurred.