When companies use direct costing, all the fixed overhead charges for the year are expensed, regardless of production levels.

Name: When companies use direct costing, all the fixed overhead charges for the year are expensed, regardless of production levels.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

In direct costing, only variable costs are assigned to products and services, while all fixed overhead costs are expensed in the period they are incurred, not tied to production levels.

When Companies Use Direct Costing, All the Fixed Overhead Charges