In the preparation of financial statements using variable costing,fixed manufacturing overhead is treated as a period cost.

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In variable costing, fixed manufacturing overhead is not included in the cost of goods sold and is instead treated as a period cost, which means it is included in the expenses of the period in which it was incurred. This is in contrast to absorption costing, where fixed manufacturing overhead is included in the cost of goods sold.

In the Preparation of Financial Statements Using Variable Costing,fixed Manufacturing