[jjm1181]

Not sure if this is the place to ask this question…but…the Becker materials state that variable costing uses all variable costs to determine contribution margin…WELL…I keep running past questions where the computation excludes variable S&A expenses and other questions where it includes the variable S&A expenses….what gives? Is there something I’m not understanding here?

B 79
A 75
R 78
F 85

[Anonymous]

Variable SG&A is included in Var costs when using variable costing (to find contrib margin)

Var SGA is included in operating expenses in absorption costing to find Net Income.

In both formats SGA is a period expense.

[Anonymous]

I was noticing this exact question last night while doing the Gleim's MCQs. I found that if you carefully read the questions..some say find “total variable cost” or “Contribution Margin” then you need to include all the variable costs. THEN i noticed some said “total variable product cost” then you exclude the non manufacturing costs like variable S&A cost. i HAAATE some of the gleim “publisher” questions..they are ridiculous in lenght and detail..(well atleast i hope they are and im not overlooking it lol)

[Author]

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