Which of the following statements is true?

Social Studies

1 answer:

baherus [9]3 years ago

5 0

Answer:

(A) Variable costing treats fixed overhead as a period cost.

Explanation:

Variable costing is an important concept in accounting. Under this method, manufacturing overhead is incurred in the period that a product is produced. Variable costing includes only variable manufacturing costs (direct materials, direct labor, and variable manufacturing overhead) in unit product costs. Moreover, it treats fixed overhead as a period cost.

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