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Absorption Costing
Absorption costing is an inventory valuation method that incorporates all costs associated with manufacturing, including direct materials, direct labor, and all manufacturing overhead expenses, both variable and fixed, into the product cost.
Variable Costing
A costing method that includes only variable production costs—direct materials, direct labor, and variable manufacturing overhead—in unit product cost.
Management
The process of planning, organizing, leading, and controlling an organization's resources to achieve specific goals.
Variable Costing
A costing method that includes only variable costs—direct materials, direct labor, and variable manufacturing overhead—in the cost of a unit of production, excluding fixed overhead.
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