Asked by Karmel Abdeljalil on Jun 03, 2024
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Variable costing is an acceptable costing method for GAAP.
Variable Costing
A costing method that includes only variable production costs (materials, labor, and overhead) in the cost of goods sold and treats fixed overhead expenses as period costs.
GAAP
Generally Accepted Accounting Principles, a common set of accounting rules and standards used in the United States for preparing financial statements.
- Understand the distinctions among different costing approaches (absorption, variable) and their effects on financial statements.
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Learning Objectives
- Understand the distinctions among different costing approaches (absorption, variable) and their effects on financial statements.
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