The amount of fixed manufacturing costs inventoried depends on two factors: the number of units in ending inventory and the rate at which fixed manufacturing overhead costs are allocated to each unit.

Question

Quizplus · Accepted Answer

Fixed manufacturing costs are allocated to each unit, so the amount of fixed manufacturing costs inventoried will depend on both the number of units in ending inventory and the rate at which these costs are allocated to each unit.

The Amount of Fixed Manufacturing Costs Inventoried Depends on Two