Under direct costing, all fixed manufacturing overhead is charged off as a current expense.

Name: Under direct costing, all fixed manufacturing overhead is charged off as a current expense.
Brand: Quizplus
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Quizplus · Accepted Answer

Under direct costing, fixed manufacturing overhead is treated as a period cost and charged off as a current expense in the period incurred. This is in contrast to absorption costing, where fixed manufacturing overhead is included in the cost of inventory and expensed when the inventory is sold.

Under Direct Costing, All Fixed Manufacturing Overhead Is Charged Off