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
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Question

Quizplus · Accepted Answer

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

Under Absorption Costing,fixed Manufacturing Costs Are Not Expensed Until the Units