Question

Which of the following statements is true?

Answer 1

Answer:

Statement b. is True

Explanation:

When using variable costing method, all the costs which are variable in nature is charged based on per unit basis and is not periodic in nature, as depends o quantum of production and sales.

While considering fixed cost, it is considered periodic in nature as this does not depend on quantum of production or quantum of sales, as this is fixed in terms for a period it is periodic in nature, and is treated unavoidable even at a level where no units are produced.

Thus, Statement b. is True.