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A and B enter into a lease for property owned by B for a term of four years commencing April 1,2009,and ending March 31,2013.In this case,the lease creates
Absorption Costing
A cost accounting method that includes all manufacturing costs - direct materials, direct labor, and both variable and fixed overhead - in the cost of a product.
Unit Product Cost
The total cost (both variable and fixed costs) associated with producing a single unit of a product.
Variable Costing
A method of inventory costing that includes only variable production costs—direct materials, direct labor, and variable manufacturing overhead—in product costs, excluding fixed manufacturing overhead.
Per Unit
A term that refers to expressing costs, revenues, or any other financial metric on a per unit of production or per unit of sale basis.
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