Under variable costing fixed manufacturing costs are
A) charged to the product.
B) not reported in the income statement.
C) considered to be a period cost.
D) reported on the balance sheet as a prepayment.

Question

Quizplus · Accepted Answer

Under variable costing, fixed manufacturing costs are treated as period costs and are expensed in the period they are incurred, rather than being allocated to the cost of goods sold or inventory.

Under Variable Costing Fixed Manufacturing Costs Are