Under Variable Costing,fixed Manufacturing Overhead Cost Is Treated as a Product

question 173

True/False

Under variable costing,fixed manufacturing overhead cost is treated as a product cost.

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Definitions:

Special Journal

A journal used in accounting to record transactions of a similar type.

General Journal

A primary accounting journal where all types of transactions are initially recorded before being posted to specific accounts in the ledger.

Subsidiary Ledger

A detailed ledger that provides a breakdown of individual transactions affecting a control account in the general ledger, such as accounts receivable or accounts payable.

General Ledger

The master set of accounts that summarize all transactions occurring within an entity, serving as the main accounting record.