Variable Costing

CPA Exam Forum BEC BEC Review Variable Costing

This topic contains 3 replies, has 0 voices, and was last updated by  Harry 5 years, 5 months ago.

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  • #160143

    DestinedCPA
    Participant

    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!!!

    #281342

    Harry
    Participant

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

    #281343

    DestinedCPA
    Participant

    Thanks Harry! Is it assigned to inventory?

    #281344

    Harry
    Participant

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

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