Question: Under variable costing, all fixed costs (including fixed product costs) are expenses in the period during which they are incurred (i.e. fixed product costs won't
Under variable costing, all fixed costs (including fixed product costs) are expenses in the period during which they are incurred (i.e. fixed product costs won't be part of the cost of goods sold). If fixed costs must be incurred during a given period, shouldn't they be expense during that period? Does variable costing violate the matching principle?
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