Which of the following statements is true regarding variable costing? Multiple Choice

It is a traditional costing approach.

Only manufacturing costs that change in total with changes in production level are included in product costs.

It is not permitted to be used for managerial reporting.

It treats overhead in the same manner as absorption costing.

B. Only manufacturing costs that change in total with changes in production level are included in product costs

Explanation:

Variable costing is an accounting methodolgy that only charges variable costs to invetory, so it is a tricky way to do the accounting because it does not take all of the variables into consideration in order to be able to price something, it doesn't take all of the costs of the company in the cost of producing their products, so that is why it is not traditional or popular accounting system.