Variable costing regards fixed manufacturing overhead as a(n):
A)product cost.
B)period cost.
C)inventoriable cost.
D)administrative cost.

Question

Quizplus · Accepted Answer

Variable costing regards fixed manufacturing overhead as a period cost, and not a product cost or inventoriable cost. This is because fixed overhead costs are not directly tied to the production of a specific product and are instead incurred to support overall operations. As a result, they are treated as period costs and expensed in the period in which they are incurred.

Variable Costing Regards Fixed Manufacturing Overhead as A(n)