[Anonymous]

I’m using becker for bec and am confused regarding the treatment of variable SG&A costs under the variable method. Do you include variable SG&A in the calculation of contribution margin or do you leave it as a period cost to arrive at net income? I know fixed SG&A is a period cost under variable method and for absorption you treat both fixed and variables SG&A as a period cost but am confused on the treatment of variable SG&A under the variable method. Can someone help clear this up? I have my bec exam on the 12/5 so I’m grinding down the last bit of review. Thanks!

[tyndil24]

For the variable method the calculation is revenue – all variable costs = contribution margin.

So variable SG&A should be included in the calculation.

REG - 76 (7/13)
FAR - 83 (8/13)
BEC - 87 (10/13)
AUD - 84 (1/14)

[tyndil24]

For the variable method the calculation is revenue – all variable costs = contribution margin.

So variable SG&A should be included in the calculation.

REG - 76 (7/13)
FAR - 83 (8/13)
BEC - 87 (10/13)
AUD - 84 (1/14)

[thunderoro]

Under variable method the variable selling, general & administrative expense is included in the calculation for contribution margin.

Although it's included in the contribution margin calculation (I/S), it's not included in the inventory amount (B/S).

FAR - PASSED
REG - PASSED
BEC - PASSED
AUD - PASSED
I want to thank, first and foremost, to God and to my family for supporting me 9999% throughout this journey; and secondly, to all my friends that kept me occupied during this battle.

[thunderoro]

Under variable method the variable selling, general & administrative expense is included in the calculation for contribution margin.

Although it's included in the contribution margin calculation (I/S), it's not included in the inventory amount (B/S).

FAR - PASSED
REG - PASSED
BEC - PASSED
AUD - PASSED
I want to thank, first and foremost, to God and to my family for supporting me 9999% throughout this journey; and secondly, to all my friends that kept me occupied during this battle.

[Author]

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