Examlex
The compressor pressurizes the liquid refrigerant in an air conditioning system causing it to vaporize.
Variable Costing
A technique in managerial accounting where only variable production costs are charged to product units, differentiating it from absorption costing by not including fixed overhead.
Absorption Costing
A cost accounting method that includes all manufacturing costs, including both fixed and variable, in the cost of a product.
Contribution Format
A type of income statement layout that separates variable costs from fixed costs, highlighting the contribution margin.
Absorption Costing
A technique in cost accounting that incorporates all costs of production, including fixed and variable, into the valuation of inventory and cost of goods sold.
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