Under Variable Costing,fixed Manufacturing Costs Are Treated as an Expense

question 231

True/False

Under variable costing,fixed manufacturing costs are treated as an expense of the period.

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Definitions:

Direct Labor

The wages paid to employees who are directly involved in the production of goods or provision of services, considered a variable cost.

Direct Labor Rate

The cost per hour for labor directly involved in the production of goods or services.

Indirect Labor Rate

The cost of labor that cannot be directly traced to the production of goods or services, but is necessary for the process.