In variable costing, when does fixed manufacturing overhead become an expense?
A)Never
B)In the period when the product is sold
C)In the period when the expense is incurred
D)At the time when units are produced

Question

Quizplus · Accepted Answer

In variable costing, fixed manufacturing overhead is expensed in the period when it is incurred, regardless of when the product is sold.

In Variable Costing, When Does Fixed Manufacturing Overhead Become an Expense