Under Absorption Costing,fixed Manufacturing Overhead Is Expensed at the Time

question 99

True/False

Under absorption costing,fixed manufacturing overhead is expensed at the time the units are produced.Under variable costing,fixed manufacturing overhead is expensed at the time the units are sold.

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Definitions:

Adjustment

An entry in accounting made to correct, alter, or update the financial records and statements of a company.

Adjusting Journal Entry

An entry made in a journal at the end of an accounting period to allocate income and expenditure to the appropriate period.

Balance Sheet Approach

A method of estimating a company's value by focusing on its balance sheet, particularly its assets and liabilities.

Allowance for Doubtful Accounts

A contra-asset account representing the estimated portion of accounts receivable that may not be collected.