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15 November, 10:03

Variable costing treats fixed overhead cost as a period cost.

a. True

b. False

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Answers (1)
  1. 15 November, 10:22
    0
    True. Variable costing treats fixed overhead cost as a period cost.

    A variable cost changes with the number of units that are put out.

    Overhead cost (which is ongoing) refers to what it takes to run the business or product the product.

    A period cost refers to a cost that is linked over time for a transaction, not constant.
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