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Variable Costing
A costing method that includes only variable production costs in the cost of goods sold and treats fixed overhead as a period expense.
Absorption Costing
A cost calculation method in accounting that adds all expenses related to manufacturing—direct materials, direct labor, and both fixed and variable overhead—into the final cost of a product.
Directly Traced
Refers to costs or expenses that can be directly linked to a specific product, service, or department.
Product Costs
Expenses directly incurred from the manufacturing of products, including direct materials, direct labor, and manufacturing overhead.
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