Question

Fixed non-manufacturing costs are classified as period costs under variable costing, but not under absorption costing....

Fixed non-manufacturing costs are classified as period costs under variable costing, but not under absorption costing. T/F

Homework Answers

Answer #1

The Given statement is false.

Explanation:

Under variable costing, all the fixed costs whether it is Mnufacturing or Non Manufacturing costs are considered as the period costs but under absorption costing all the fixed manufacturing costs becomes the product costs and all the other fixed non manufacturing costs remains same period costs.

Hence the statement i.e. Fixed non-manufacturing costs are classified as period costs under variable costing but the statement i.e. but not under absorption costing is incorrect as explained above.

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