Under absorption costing, fixed manufacturing costs are not expensed until the units are sold.

Name: Under absorption costing, fixed manufacturing costs are not expensed until the units are sold.
Brand: Quizplus
Rating: 4.8 (33 reviews)

Question

Quizplus · Accepted Answer

Under absorption costing, fixed manufacturing costs are included in the cost of each unit produced and are not expensed until the units are sold. This is in contrast to variable costing, where fixed manufacturing costs are expensed in the period incurred.

Under Absorption Costing, Fixed Manufacturing Costs Are Not Expensed Until