8 IF FIXED MANUFACTURING OVERHEAD COST IS RELEASED FROM INVENTORY, T...

7-8 If fixed manufacturing overhead cost is

released from inventory, then inventory levels

must be assigned to products to properly match

the costs of producing units of product with the

must have decreased and therefore production

must have been less than sales.

revenues from the units when they are sold.

They believe that no distinction should be made

between variable and fixed manufacturing costs