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In like manner, a finished goods inventory will also have an inventoriable cost. This will include not only all the costs related to the raw materials, but also the direct labor and any fixed or variable overhead that is incurred while producing those finished goods. If those goods are stored at a rented facility, even the cost of the rental will be accounted for as an inventoriable cost.
Under absorption costing, fixed manufacturing costs ________. ________ is a method of inventory costing in which only variable manufacturing costs are included as inventoriable costs. Variable costing regards fixed manufacturing overhead as a(n) ________. The only difference between variable and absorption costing is the expensing of ________. Gloria's Decorating produces and sells a mantel clock for $100 per unit. In 2015, 42,125 clocks were produced and 37,958 were sold.