Under Variable Costing, the Fixed Manufacturing Overhead Costs Are Classified

question 79

True/False

Under variable costing, the fixed manufacturing overhead costs are classified as period costs and are expensed in the period in which they are incurred.

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Definitions:

Inventory Valuation

The method used to assign a monetary value to inventory, which affects the cost of goods sold and gross profit.

Weighted Average

A calculation that takes into account the varying degrees of importance of the numbers in a data set, often used in cost accounting.

Ending Inventory

The aggregate worth of items on offer at the termination of an accounting cycle.

Beginning Inventory

The value of inventory held by a business at the start of an accounting period.