D) sales commission 21) In varable costing, fixed manufacturing overhead is cons

Question

D) sales commission 21) In varable costing, fixed manufacturing overhead is considered a period cost because 21) A) these are not incurred in the period in which the units are produced B) these costs are incurred whether or not the company manufactures any goods C) these costs are direct costs incurred for production D) these costs are indirectly related to production ESSAY. Write your answer in the space provided or on a separate sheet of paper. 22) For a merchandising company, what is the formula used to determine the amount of merchandise inventory to be purchased? 6

Explanation / Answer

in variable costing fixed manufacturing overhead cost incurred is treated as period cost because according to variable costing these are cost are not directly related to production but indirectly related to production..

so answer is d) these costs are indirectly related to production

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