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.
Yes it;s used to get your contribution margin. You take your revenues and then you subtract all your variable expenses including SG&A.
Thanks Harry! Is it assigned to inventory?
No because all SG&A (variable and fixed) are period costs. Meaning they are not part of inventory.
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