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Variable Costing
A costing method that includes only variable production costs in the cost of goods sold and uses fixed manufacturing overhead as a period cost.
Absorption Costing
A financial calculation approach that encompasses both direct and indirect expenses related to producing a product.
Variable Costing
An accounting method that only includes variable production costs (costs that change with the level of output) in the cost of goods sold and treats fixed costs as period costs.
Manufacturing Costs
The total costs incurred in the process of producing or manufacturing goods.
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