Examlex
Identify the following terms.
-Monte Verde
Variable Costing
An accounting method that includes only variable production costs (costs that change with the level of production) in product costs.
Absorption Costing
A financial accounting technique that integrates all production expenses, including direct materials, direct labor, along with all variable and fixed manufacturing overhead costs, into the product's cost.
Variable Production Costs
Costs that vary directly with the level of production output, such as raw materials and labor expenses.
Fixed Production Costs
Payments that stay unchanged regardless of how much is produced or sold, covering rent, salaries, and insurance.