Unabsorbed fixed overhead costs in an absorption costing system are
A)fixed manufacturing costs not allocated to units produced.
B)variable overhead costs not allocated to units produced.
C)excess variable overhead costs.
D)costs that cannot be controlleD.

Question

Quizplus · Accepted Answer

Unabsorbed fixed overhead costs in an absorption costing system are fixed manufacturing costs that are not allocated to units produced. These costs are typically incurred as part of the production process but cannot be directly attributed to any specific unit. As a result, they remain unallocated and are recognized as an expense in the period incurred.

Unabsorbed Fixed Overhead Costs in an Absorption Costing System Are