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In the context of the effects of a work-family imbalance, the compensation theory states that:
Variable Costs
Expenditures that fluctuate in accordance with the amount of products made or sold.
Inventoriable Costs
Expenses directly connected to the production of goods that are initially recorded as inventory and expensed as cost of goods sold when the goods are sold.
Manufacturing Overheads
All indirect costs associated with the production process, including utilities, maintenance, and factory management salaries.
Period Costs
Expenses that are not directly tied to production activities, often including selling, general, and administrative expenses.
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