Under Variable Costing, Which Manufacturing Cost Is Expensed as a Period

question 17

Multiple Choice

Under variable costing, which manufacturing cost is expensed as a period cost?

• A) Fixed manufacturing overhead.
• B) Direct materials.
• C) Variable manufacturing overhead.
• D) Direct labour.

---

Definitions:

Intellectual Property

A category of property that includes intangible creations of the human intellect, such as patents, copyrights, trademarks, and trade secrets.

Patent

A government-granted exclusive right to an inventor for a limited period, protecting their invention from unauthorized use, reproduction, or sale.

Breach of Contract

Failure to perform any term of a contract, written or oral, without a legitimate legal excuse.

Reject the Offer

The act of declining a proposal or bid, potentially in negotiations, contracts, or transactions.