Figure 1.1
Identify the levels of organization in the figure above.
-Label B: ______________________________
Definitions:
Variable Costing
A financial tracking method that considers just the variable operating costs (direct materials, direct labor, and variable manufacturing overhead) in the pricing of merchandise.
Unit Product Cost
The overall expense incurred to manufacture a single item, encompassing direct materials, direct labor, and overhead costs.
Absorption Costing
Absorption costing is an accounting method that includes all of the manufacturing costs (direct materials, direct labor, and overhead) in the cost of a product.
Variable Costing
An accounting method that only considers variable costs in the cost of goods sold and is used in internal financial analysis.