Answer (D) is correct . Using absorption costing, fixed manufacturing overhead is included in inventoriable (product) costs. Fixed manufacturing overhead costs are indirect costs because they cannot be directly traced to specific units produced.
Answer (A) is incorrect because Fixed manufacturing overhead costs are neither direct nor period costs.
Answer (B) is incorrect because Fixed manufacturing overhead costs are not period costs.
Answer (C) is incorrect because Fixed manufacturing overhead costs are not direct costs.
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