Which of the Following Statements Is False Regarding Variable Costing

question 36

Multiple Choice

Which of the following statements is false regarding variable costing?

• A) Variable overhead is treated as a product cost.
• B) Variable costing is required for external financial statements prepared in accordance with generally accepted accounting principles (GAAP).
• C) Fixed manufacturing overhead is treated as a period cost.
• D) Period costs are expensed as they are incurred.

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Definitions:

Quartzite

A hard, metamorphic rock formed from quartz-rich sandstone that has undergone heat and pressure transformations.

Weather

The state of the atmosphere at a place and time as regards heat, dryness, sunshine, wind, rain, etc.

Physical Weathering

The natural breakdown of rocks and minerals at the Earth's surface due to physical processes such as temperature changes, wind, water, and ice, without altering the rock's chemical composition.

High-Pressure Environments

Conditions characterized by significantly greater atmospheric or fluid pressure than that found at the Earth's surface, often found in deep-sea or subterranean locations.