When using variable costing,fixed manufacturing overhead is treated as which of the following types of costs?
A)Product
B)Mixed
C)Period
D)Variable

Question

Quizplus · Accepted Answer

When using variable costing, fixed manufacturing overhead is treated as a period cost, not as a product cost. This is because fixed costs, by definition, do not vary based on the level of production or sales. Therefore, they are not directly attributable to the production of any specific product; instead, they are incurred to support the overall manufacturing process and are treated as a period cost that is expensed when incurred.

When Using Variable Costing,fixed Manufacturing Overhead Is Treated as Which