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What are the two contrasting viewpoints on which the book is built?
Absorption Costing
An accounting method that includes all direct and indirect manufacturing costs in the cost of a product.
Net Income
Net income is the total profit of a company after all expenses, taxes, and costs have been subtracted from total revenue.
Variable Costing
An accounting method that includes only variable production costs (materials, labor, and variable overhead) in product cost calculations, excluding fixed overhead.
Absorption Costing
A costing method that includes all manufacturing costs - direct materials, direct labor, and both variable and fixed manufacturing overhead - in the cost of a product.
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