In absorption costing,fixed manufacturing overhead is expensed ________.
A) when all the other non-manufacturing fixed costs are expensed
B) when the product is sold
C) at the end of the period in which it is paid
D) when the units are produced

Question

Quizplus · Accepted Answer

In absorption costing, fixed manufacturing overhead is included in the cost of producing the product and is only expensed when the product is sold. This is because fixed manufacturing overhead is seen as a necessary cost of production and should be assigned to the products that incur the cost. Therefore, it is not expensed until the sale of the product occurs.

In Absorption Costing,fixed Manufacturing Overhead Is Expensed ________