Under absorption costing, fixed manufacturing costs ________.
A) are period costs
B) are inventoriable costs
C) are treated as an expense
D) are sunk costs

Question

Quizplus · Accepted Answer

Under absorption costing, fixed manufacturing costs are treated as inventoriable costs, meaning they are included in the cost of goods sold and held in inventory until the product is sold. This is in contrast to variable manufacturing costs, which are expensed as incurred.

Under Absorption Costing, Fixed Manufacturing Costs ________