Under variable costing,fixed manufacturing overhead is expensed at the time the units are produced.Under absorption costing,fixed manufacturing overhead is expensed at the time the units are sold.

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Under variable costing, fixed manufacturing overhead is treated as a period cost and is expensed in the period in which it is incurred, regardless of whether or not any units are produced. Under absorption costing, fixed manufacturing overhead is treated as a product cost and is capitalized as inventory until the units are sold.

Under Variable Costing,fixed Manufacturing Overhead Is Expensed at the Time