Fixed manufacturing overhead is considered a product cost under variable costing.

Name: Fixed manufacturing overhead is considered a product cost under variable costing.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Under variable costing, fixed manufacturing overhead is considered a period cost and is expensed in the period incurred rather than being included in the cost of the product. Only variable costs, such as direct materials, direct labor, and variable manufacturing overhead, are included in the cost of the product under variable costing.

Fixed Manufacturing Overhead Is Considered a Product Cost Under Variable