Which of the following statements is
A) The manufacturing cost per unit decreases when the volume of production increases.
B) Net income is not affected by fluctuations in production.
C) Fixed manufacturing overhead is treated like a product cost.
D) Fixed manufacturing overhead costs incurred in the current period may be recognized as expense in a later period.

Question

Quizplus · Accepted Answer

Although managers may still overproduce under variable costing,at least they are not tempted to do so by the lure of reporting higher profits.Using variable costing,increases in production have no effect on the amount of reported profit (or net income)reported in the income statement.

Which of the Following Statements Is