Question: How does a company using variable costing account for its fixed manufacturing costs? Record them into the fixed manufacturing overhead accounts and then allocate
How does a company using variable costing account for its fixed manufacturing costs? Record them into the fixed manufacturing overhead accounts and then allocate them to WIP as a product cost Record them into the fixed manufacturing overhead accounts and expense them as period costs Capitalize them directly in the WIP account as a product cost O Directly expense them to COGS as period costs
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