Under the variable costing method, fixed production overhead is
A) Included in inventory
B) Expensed in the period incurred
C) Expensed as a product cost
D) Expensed when the inventory is sold

Question

Quizplus · Accepted Answer

Under the variable costing method, fixed production overhead is expensed in the period incurred rather than being included in inventory. This is because variable costing only includes variable production costs in inventory and considers fixed production costs as period costs that should be expensed immediately.

Under the Variable Costing Method, Fixed Production Overhead Is