Some fixed manufacturing overhead costs of the current period are deferred to future periods under
A) absorption costing.
B) variable costing.
C) both absorption and variable costing.
D) neither absorption nor variable costing.

Question

Quizplus · Accepted Answer

Fixed manufacturing overhead costs are deferred to future periods under absorption costing as they are included in the inventory value and are only expensed when the inventory is sold. In contrast, variable costing expenses all fixed overhead costs as period expenses, so none are deferred to future periods.

Some Fixed Manufacturing Overhead Costs of the Current Period Are