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Multiple Choice Question:

Fixed manufacturing overhead costs are included as part of Work in Process inventory under:

A. both variable and absorption costing
B. variable costing only
C. neither variable nor absorption costing
D. absorption costing only

Sagot :

GinnyAnsweridn

Final answer:

Fixed costs remain constant regardless of production quantity, while variable costs fluctuate with production levels. Absorption costing includes fixed manufacturing overhead costs in the Work in Process inventory.


Explanation:

Fixed costs are those expenses that remain constant regardless of the amount of goods produced. They include costs like rent for a factory or storage units. Variable costs, in contrast, are directly tied to the production of additional units. In absorption costing, fixed manufacturing overhead costs are included in the Work in Process inventory.


Learn more about Fixed and Variable Costs in Absorption Costing here:

https://brainly.com/question/29804719


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