When using variable costing and absorption costing, fixed manufacturing costs are treated as
A)product costs under both.
B)product costs using absorption costing and period cost with variable costing.
C)period costs under both.
D)period costs using absorption costing and product cost with variable costing.

Question

Quizplus · Accepted Answer

Under absorption costing, fixed manufacturing costs are treated as product costs, while under variable costing, they are treated as period costs.

When Using Variable Costing and Absorption Costing, Fixed Manufacturing Costs