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Watson made the very important assumption that all behavior is
Overall
Pertaining to the total, aggregate, or general effect, situation, or assessment.
Absorption Costing
In this accounting method, the complete cost of manufacturing a product, taking into account direct materials, direct labor, along with variable and fixed overheads, is included in the product's price.
Variable Costing
An accounting method that includes only variable production costs (direct materials, direct labor, and variable manufacturing overhead) in product cost calculations, excluding fixed overhead.
Unit Product Cost
The total cost (both fixed and variable) to produce a unit of product, often used in pricing and decision-making processes.
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