Answer the Following Variable Costing Questions

question 192

Essay

Answer the following variable costing questions:
$$\begin{array} { | l | l | } \hline \text { Question } & \text { Variable Costing } \\\hline \begin{array} { l } \text { Which costs are included as } \\\text { product costs? }\end{array} \\\hline \begin{array} { l } \text { Which costs are included as } \\\text { period costs? }\end{array} \\\hline\end{array}$$

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Definitions:

Depreciation Expense

Dividing the expense of a material asset throughout its service life.

Straight-Line Depreciation

A method of depreciating an asset evenly over its useful life, allocating an equal portion of the asset's cost as an expense in each accounting period until it reaches its salvage value.

Depreciable Cost

Depreciable cost is the cost of a fixed asset minus its salvage value, over which the asset's cost can be depreciated over its useful life.

Partial Year

A term referring to a portion of a year, often used in the context of accounting and financial analysis for periods less than 12 months.