Question: Determine which costing method (variable costing or absorption costing) accounts for fixed manufacturing costs as costs of the period: a. at the time of incurrence,

Determine which costing method (variable costing or absorption costing) accounts for fixed manufacturing costs as costs of the period:

a. at the time of incurrence, or

b. at the time the finished units to which the fixed overhead relates are sold.

A. Absorption costing uses (a) and variable costing uses (b).

B. Variable costing uses (a) and absorption costing uses (b).

C. Variable costing uses (a) and absorption costing uses neither.

D. Absorption costing uses (a) and variable costing uses neither.

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