A Basic Tenet of Variable Costing Is That Fixed Manufacturing

Multiple Choice

A basic tenet of variable costing is that fixed manufacturing overhead costs be currently expensed. What is the rationale behind this?

A) Fixed manufacturing overhead costs are generally immaterial in amount.
B) Fixed manufacturing overhead costs occur regardless of level of production.
C) Allocation of fixed manufacturing costs are arbitrary at best.
D) Fixed manufacturing costs change as production changes.