Answer:
Under variable costing, fixed manufacturing overhead is expensed as period expenses.
Explanation:
Option A is wrong because under absorption costing, fixed manufacturing overhead is expensed as product expenses.
Option B is incorrect because Under variable costing, direct materials and direct labor are expensed as product expenses.
Option C is false because Fixed manufacturing overhead costs are treated as product cost under absorption costing and period cost under variable costing.
Therefore, option E is correct as fixed manufacturing overhead is expensed as period expenses under variable costing.