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Absorption Costing
An accounting method that includes all manufacturing costs - direct materials, direct labor, and both variable and fixed manufacturing overhead - in the cost of a product.
Variable Costing
A costing method where only variable manufacturing costs are included in the product cost, with fixed overhead expenses treated as period costs.
Units Manufactured
The total number of units produced during a specific period in a manufacturing process.
Absorption Costing
An accounting method that includes all of the direct and indirect manufacturing costs in the cost of a product.
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