In variable costing,fixed manufacturing overhead is considered a period cost because ________.
A) these costs are indirectly related to production
B) these are not incurred in the period in which the units are produced
C) these costs are incurred whether or not the company manufactures any goods
D) these costs are direct costs incurred for production

Question

Quizplus · Accepted Answer

Fixed manufacturing overhead costs are considered period costs under variable costing because they are incurred regardless of the company's level of production.

In Variable Costing,fixed Manufacturing Overhead Is Considered a Period Cost