Which of the following statements is FALSE?
A)Absorption costing allocates fixed manufacturing overhead to actual units produced during the period.
B)Nonmanufacturing costs are expensed in the future under variable costing.
C)Fixed manufacturing costs in ending inventory are expensed in the future under absorption costing.
D)Operating income under absorption costing is higher than operating income under variable costing when production units exceed sales units.

Question

Quizplus · Accepted Answer

Nonmanufacturing costs are not related to production volume and are therefore expensed in the period they are incurred under both variable and absorption costing.

Which of the Following Statements Is FALSE