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Variable Costing
Variable costing is a costing method that includes only variable production costs (direct materials, direct labor, and variable manufacturing overhead) in product costs.
Fixed Manufacturing Overhead
Consistent costs associated with manufacturing that do not vary with the level of production, such as rent and salaries of managers.
Variable Costing
An accounting method that charges all variable production costs directly to the cost of production, excluding fixed overhead costs from product costing.
Fixed Manufacturing Overhead
Costs associated with manufacturing that do not vary with the level of production, such as rent, salaries of managers, and depreciation of equipment.
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