1. 

   DestinedCPA
   

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   I am confused as to whether selling and admin variable costs should be used in calculating the contribution margin under variable costing. I'm using Becker and some questions include it in calculating it and some don't.

   Please help!!!

   Texas
   BEC: 80
   FAR: 79
   REG: 65, 77
   AUD: 75

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   Posted 2 years ago #
2. 

   Harry
   

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   Member

   Yes it;s used to get your contribution margin. You take your revenues and then you subtract all your variable expenses including SG&A.

   BEC 77
   FAR 81
   AUD 97
   REG 75

   Posted 2 years ago #
3. 

   DestinedCPA
   

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   Member

   Thanks Harry! Is it assigned to inventory?

   Texas
   BEC: 80
   FAR: 79
   REG: 65, 77
   AUD: 75

   Posted 2 years ago #
4. 

   Harry
   

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   Member

   No because all SG&A (variable and fixed) are period costs. Meaning they are not part of inventory.

   BEC 77
   FAR 81
   AUD 97
   REG 75

   Posted 2 years ago #

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