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A basic tenet of variable costing is that fixed manufacturing overhead costs be currently expensed.

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A basic tenet of variable costing is that fixed manufacturing overhead costs be currently expensed.

A basic tenet of variable costing is that fixed manufacturing overhead costs be currently expensed. What is the rationale behind this?
A) Fixed manufacturing costs change as production changes.
B) Fixed manufacturing overhead costs occur regardless of level of production.
C) Fixed manufacturing overhead costs are generally immaterial in amount.
D) Allocation of fixed manufacturing costs are arbitrary at best.

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Managerial Accounting

Edition: 4^th

Author: Braun

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