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What Is the Difference Between Variable-Cost Pricing and Full-Cost Pricing

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What is the difference between variable-cost pricing and full-cost pricing?


Definitions:

Equity Account

An account representing the owner's or shareholders' interest in a company, reflected in the capital stock, retained earnings, and contributed surplus on the balance sheet.

Unearned Revenue

Money received by a company for products or services yet to be delivered or performed, recorded as a liability on the balance sheet until earned.

Retained Earnings

The segment of net income that is not issued as dividends, reserved by the company for reinvestment in its essential business or for settling debts.

Asset Account

Accounts used in accounting to track the resources owned by a company that have future economic value.

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