Fixed Manufacturing Overhead Cost Released From Inventory Definition:

The portion of the fixed manufacturing overhead cost of a prior period that becomes an expense of the current period under the absorption costing method as a result of sales exceeding production.

Other Related Accounting Articles:

• Fixed Manufacturing Overhead Cost Deferred in Inventory Definition
• Account Analysis Definition
• Impact of Just In Time (JIT) Inventory Methods on Variable and Absorption Costing System
• Marginal Costing Definition
• Full Costing Definition
• Equivalent Units of Production
• How to Account Warranties
• Flow of Costs
• Manufacturing Overhead Budget Definition
• Accounting for Manufacturing Businesses