Variable Costing MCQs

True Tamplin

Written by True Tamplin, BSc, CEPF®
Updated on March 25, 2022

Test your knowledge with this set of multiple choice questions (MCQ) covering the topic of variable costing. Answering every question correctly will assist your exam preparation, interviews, and professional work. To begin, just click on the “Start Quiz” button.

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Frequently Asked Questions

What is variable costing?

Variable costing is a costing methodology that assigns the costs of production to the products or services based on the variable costs incurred. The fixed costs are expensed in the period in which they are incurred.

Are there any limitations to using variable costing?

The benefits of using variable costing include greater clarity and transparency into the costs of products and services, a more accurate assessment of profitability and performance, and a greater ability to manage costs and pricing decisions.

Are there any limitations to using variable costing?

Are there any limitations to using variable costing?

Variable Cost is also known as?

Variable Cost is also known as direct costing.

What industries is Variable Costing most suited for?

Variable costing is most suited for industries that have a high degree of variability in their costs, such as manufacturing and retail. It can be less suitable for businesses with more stable or consistent costs, such as those in the service industry.

True Tamplin, BSc, CEPF®

About the Author
True Tamplin, BSc, CEPF®

True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists.

True is a Certified Educator in Personal Finance (CEPF®), a member of the Society for Advancing Business Editing and Writing, contributes to his financial education site, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics.

To learn more about True, visit his personal website, view his author profile on Amazon, or check out his speaker profile on the CFA Institute website.

4 thoughts on "Variable Costing MCQs"

  1. An interesting discussion is worth comment. I think that you should write more on this topic, it might not be a taboo subject but generally people are not enough to speak on such topics. To the next. Cheers

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