Variable costing income statements include fixed manufacturing overhead as part of the costs of ending inventory.

Name: Variable costing income statements include fixed manufacturing overhead as part of the costs of ending inventory.
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Question

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Variable costing income statements only include variable manufacturing costs as part of the costs of ending inventory. Fixed manufacturing overhead is treated as a period expense and is expensed in the period in which it is incurred.

Variable Costing Income Statements Include Fixed Manufacturing Overhead as Part