Which of the following statements is true? In variable costing, fixed manufacturing overhead costs flows through t inventory accounts on the balance sheet before being recorded as sales revenue on the income statement. In variable costing, fixed manufacturing overhead costs flows through the inventory accounts on the balance sheet before being recorded as part of selling and administrative expenses on the income statement. In variable costing, fixed manufacturing overhead costs flows through the inventory accounts on the balance sheet before being recorded as part of cost of goods sold on the income statement. In variable costing, fixed manufacturing overhead costs are recorded as period expenses on the income statement as incurred