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Which of the following statements is true? Variable costing treats fixed overhead as a period cost. Absorption costing treats fixed overhead as a period cost.

Which of the following statements is true?

Variable costing treats fixed overhead as a period cost.

Absorption costing treats fixed overhead as a period cost.

Absorption costing treats fixed overhead as an expense in the period it is incurred.

Variable costing excludes all overhead from product costs.

Managers can manipulate earnings more easily under variable costing by varying the production level.

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