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Direct Costing
A cost accounting method where only variable costs (direct materials, direct labor, variable manufacturing overhead) are included in product costs, fixed overhead costs are expensed in the period they are incurred.
Cost Of Goods Manufactured
The total cost of making and finishing a product.
Variable Manufacturing Costs
Expenses that vary proportionally with production volume, such as materials and labor.
Variable Costing
A costing method where only variable production costs are included in product costs, with fixed overhead costs treated as period expenses.
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