Asked by Emily Feasel on Apr 25, 2024
Verified
The key difference between variable costing and absorption costing is the treatment of ________ costs.
Variable Costing
A costing method that includes only variable production costs in the cost of goods sold and treats fixed overhead as a period expense.
Absorption Costing
A cost calculation method in accounting that adds all expenses related to manufacturing—direct materials, direct labor, and both fixed and variable overhead—into the final cost of a product.
- Identify and explain the differences between variable costing and absorption costing.
Verified Answer
Learning Objectives
- Identify and explain the differences between variable costing and absorption costing.
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