Under absorption costing,fixed manufacturing overhead could be found in all of the following except the
A)work-in-process account.
B)finished goods inventory account.
C)Cost of Goods Sold.
D)period costs.

Question

Quizplus · Accepted Answer

Fixed manufacturing overhead is included in the cost of producing finished goods under absorption costing. Therefore, it can be found in the work-in-process account, finished goods inventory account, and ultimately in the Cost of Goods Sold when the products are sold. However, fixed manufacturing overhead is not considered a period cost because it is incurred to produce the products and is not expensed immediately in the period incurred.

Under Absorption Costing,fixed Manufacturing Overhead Could Be Found in All