Under variable costing,fixed manufacturing overhead costs are a ________ cost.Under absorption costing,fixed manufacturing overhead costs are a ________ cost.
A) product, period
B) period, product
C) product, product
D) period, period

Question

Quizplus · Accepted Answer

Under variable costing, fixed manufacturing overhead costs are treated as period costs and expensed in the period they are incurred. Under absorption costing, these costs are treated as product costs and are allocated to the units produced, becoming part of the cost of goods sold when the product is sold.

Under Variable Costing,fixed Manufacturing Overhead Costs Are a ________ Cost