Explain how are the fixed manufacturing overhead costs treated under Generally Accepted Accounting Principles?

What will be an ideal response?

Answer: Under Generally Accepted Accounting Principles (GAAP), fixed manufacturing overhead costs are allocated as an inventoriable cost to the output units produced. Every output unit manufactured will include the fixed overhead cost per unit along with other costs. That is, for purposes of allocating fixed overhead costs to products, these costs are viewed as if they had a variable-cost behavior pattern.