Asked by Jamie Flexer on Jun 09, 2024
Verified
Identify the treatment of each of the following costs under variable costing and absorption costing:
Variable Costing
A costing method that includes only variable production costs (direct labor, direct materials, and variable manufacturing overhead) in product costs.
Absorption Costing
Accounting method that includes all manufacturing costs (direct costs, variable and fixed overhead) in the cost of a product.
- Identify the differences in treatment of costs as product costs under the practices of absorption costing and variable costing.
Verified Answer
AA
Learning Objectives
- Identify the differences in treatment of costs as product costs under the practices of absorption costing and variable costing.