Fixed manufacturing costs are written off as current expenses of the period in which they occurred when using
A) direct costing.
B) standard costing.
C) absorption costing.
D) differential costing.

Question

Quizplus · Accepted Answer

In direct costing, also known as variable costing, fixed manufacturing costs are expensed in the period they occur rather than being allocated to product costs.

Fixed Manufacturing Costs Are Written Off as Current Expenses of the Period