This method differs from calculating a cost related to the absorption method. To utilize this method, an accountant factors in associated costs involved in the manufacturing process.
Related information about variable costing:
- Variable Costing - Wikipedia, the free encyclopedia
Variable Costing is a managerial accounting cost concept. Under this method, manufacturing overhead is incurred in the period that a product is produced.
- Absorption Costing vs. Variable Costing
and Variable Costing. Variable. Costing. Absorption. Costing. DM. DL. Product. P d t. DM. DL. DL. VMOH. Costs. Product. Costs. DL. VMOH. VS&A. Period. C t ...
- Variable Costing: Definition from Answers.com
Method in which the costs to be inventoried include only the variable manufacturing costs. Fixed factory overhead is treated as a period cost-it is deducted.
- Arguments for Variable Costing in Managerial Decision Making ...
Similar to financial accounting, managerial accounting accumulates and analyzes data to make logical economical decisions. "Variable costing" is an ...
- Variable Costing System-A Decision Making Tool for Management
A full explanation of variable costing method. Why variable costing system differs from absorption costing system. Variable costing system is a decision making ...
- Absorption vs. Variable Costing - Pacific Lutheran University
But what happens under variable costing. Under variable costing, 100% of fixed costs are expensed in the period incurred. Zero (zip, nada) fixed costs are ...
- Variable Costing
An alternative system to Absorption Costing is Variable Costing. Although GAAP does not permit Variable Costing, Variable Costing is still widely used by ...
- Variable Costing: A Tool for Management
called variable costing, is preferred by some managers for internal decision making ... absorption costing and variable costing produce different figures for net ...